If the Wage Rate Doesn't Change but a Profit-Maximizing Competitive

question 136

Multiple Choice

If the wage rate doesn't change but a profit-maximizing competitive firm hires fewer workers, we know that

• A) the price of the product increased.
• B) technical change occurred that increased labor productivity, reducing the firm's demand for labor.
• C) demand for the product fell or there has been a reduction in labor productivity.
• D) marginal factor cost increased.

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