If a Perfectly Competitive Firm Is Currently Employing Workers to the Point

question 243

Multiple Choice

If a perfectly competitive firm is currently employing workers to the point where the value of the last worker's marginal product is equal to the wage rate, and the government imposes a minimum wage higher than the value of the worker's marginal product, we can predict that

• A) the firm will pay the higher wage rate and not change the number of workers hired.
• B) the firm will no longer employ the marginal worker.
• C) the firm will increase its price.
• D) the firm will employ more workers.

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