The Individual Firm Operating in a Perfectly Competitive Labor Market

question 303

Multiple Choice

The individual firm operating in a perfectly competitive labor market

• A) can hire more labor only by offering a higher wage.
• B) faces an inelastic demand for labor.
• C) will pay less to the additional labor employed.
• D) can buy all the labor it wants at the going market wage rate.

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Definitions:

Higher-order Conditioning

A process in classical conditioning by which a stimulus that's associated with a primary conditioned stimulus also becomes a conditioned stimulus.

Stimulus Discrimination

The ability to differentiate between one stimulus and similar stimuli, ensuring that only the original stimulus triggers the conditioned response in classical conditioning.

Stimulus Discrimination

The ability to differentiate between similar stimuli and respond appropriately to each one.

Conditioned Stimulus

A conditioned stimulus is a previously neutral stimulus that, after being repeatedly paired with an unconditioned stimulus, begins to evoke a conditioned response.