Use the Following to Answer Questions :
Scenario: the Decision

question 14

Multiple Choice

Use the following to answer questions :
Scenario: The Decision to Hire Labour
Assume that both the product market and the labour market are perfectly competitive.The price of this firm's product is $5.The firm's total product with respect to labour is given in the table that follows. $\begin{array}{llcc} \hline \text { Quantity } & \\ \text { of Labour } & \text { Quantity } \\ \text { (workers) } & \text {of Output }\\\hline 0&0\\1 &7\\2 &13\\3&18\\4&21\\\hline\end{array}$

-(Scenario: The Decision to Hire Labour) Use Scenario: The Decision to Hire Labour.Holding everything else constant,if the demand for this firm's product decreases:

• A) its value of marginal product curve shifts to the right,and it will hire more workers.
• B) its value of marginal product curve shifts to the left,and it will hire more workers.
• C) its value of marginal product curve shifts to the left,and it will hire fewer workers.
• D) the firm will not change its hiring,since it is a perfectly competitive firm.

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Definitions:

Arachnoid Mater

A delicate membrane, one of the three layers of the meninges that surround the brain and spinal cord.

Obturator Nerve

A nerve in the pelvis that emerges from the lumbar plexus, innervating portions of the lower limbs, particularly muscles in the medial thigh.

Genitofemoral Nerve

A nerve arising from the lumbar plexus, involved in motor and sensory functions of the genital and femoral regions.

Lumbar Plexus

A network of nerve fibers in the lumbar region of the spine that supplies nerves to the lower part of the abdomen, the hips, and the legs.