A Firm Is Both Hiring Labor and Selling Output in Purely

question 6

Multiple Choice

A firm is both hiring labor and selling output in purely competitive markets and is maximizing profits.It is currently operating in the elastic range of its MRP curve.If the wage rate increases,its total spending on wages at the new equilibrium will:

• A) be larger.
• B) be smaller.
• C) be unchanged.
• D) change,but it is impossible to determine the direction.

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Definitions:

Labor

The process of childbirth, beginning with the onset of contractions leading to the delivery of a baby and placenta.

Zygote

The initial cell formed when a new organism is produced by the union of sperm and egg cells.

Reflex Responses

Involuntary, automatic actions or movements the body makes in response to specific stimuli, crucial for survival and functioning.

Native Language

The first language a person learns, typically spoken in the home during childhood.