If the Supply of Labor to a Firm Is Perfectly

question 293

Multiple Choice

If the supply of labor to a firm is perfectly elastic at the going wage rate established by the forces of supply and demand then

• A) the firm is price taker.
• B) the firm can only hire additional units of labor by driving the wage rate up.
• C) the wage rate has been decreasing.
• D) full employment exists in the labor market.

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Definitions:

Business Expenses

Costs incurred in the ordinary course of business, including operational costs, utilities, salaries, and rent.

Tactical Plans

Short-range plans designed to implement the activities and objectives specified in the strategic plan.