A Decrease in the Number of Workers Hired by a Firm

question 97

Multiple Choice

A decrease in the number of workers hired by a firm could result from

• A)an increase in the marginal product of labor.
• B)an increase in the marginal revenue product of labor.
• C)an increase in the real wage.
• D)a decrease in the real wage.

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Definitions:

Number of Firms

The total count of business entities operating within a particular market or industry.

Supply Curve

A graphical representation showing the relationship between the price of a good and the amount of it that producers are willing to supply.

Bond Rating Agencies

Independent firms that assess the creditworthiness of both debt securities and their issuers.

Restrictive Covenants

Clauses in contracts that restrict certain actions of the parties involved to protect business interests.