Which of the Following Best Describes the Output Effect of a Wage

question 11

Multiple Choice

Which of the following best describes the output effect of a wage decrease?

• A)The firm's marginal cost increases,the firm desires to produce less output,and therefore less labor is required
• B)The cost of labor is relatively higher causing the firm to use relatively less labor
• C)The firm's marginal cost falls,the firm desires to produce more output,and therefore more labor is required
• D)The firm's labor demand curve becomes more inelastic,causing it to employ less labor

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