The Reason That the Supply Curve for Labor in a Purely

question 171

Multiple Choice

The reason that the supply curve for labor in a purely competitive market slopes upward is because

• A) the wage rate paid to workers falls as more are hired.
• B) the marginal product of labor falls as output increases.
• C) marginal resource cost rises as productivity increases.
• D) higher wages must be paid to bid workers away from other opportunities.

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