If the Wage Rate in a Purely Competitive Labor Market

question 62

Multiple Choice

If the wage rate in a purely competitive labor market decreases,it will cause the:

• A) labor supply curve for the industry to shift rightward.
• B) labor supply curve for a single competitive firm to shift leftward.
• C) marginal resource cost for a single competitive firm in the industry to decrease.
• D) marginal resource cost for a single competitive firm in the industry to increase.

Understand the concept of continuous process improvement and its importance to corporate culture.

Describe the evolution of labor unions' roles and strategies in post-World War II America.

Identify different strategies (forcing, fostering, escape) used by companies and unions in labor negotiations.

Comprehend high-performance work systems and their impact on employee involvement and decision making.

---

Definitions:

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

Output

Refers to the total quantity of goods or services produced by an individual, company, or economy.

Expand

The process of increasing the scale, scope, or reach of an operation, business, or system, often aiming for growth or diversification.

Fixed Cost

Costs that do not vary with the level of output or activity, remaining constant regardless of production volume.