Asked by
Stacey Alferez
on Nov 05, 2024
Verified
If the supply of labor increases, which of the following events will occur?
A) The wage rate will fall and firms will increase employment up until the point where MRP equals the new wage rate.
B) The wage rate will fall and firms will decrease employment to the point where MRP equals the new wage rate.
C) The wage rate will increase and firms will decrease employment to the point where MRP equals the new wage rate.
D) The wage rate will increase and firms will increase employment up until the point where MRP equals the new wage rate.
Marginal Revenue Product
The additional revenue generated from employing one more unit of a resource or factor of production.
Wage Rate
The fixed amount of compensation paid to an employee for performed labor, typically expressed per hour or unit of work.
- Discern the relationship involving wage levels, performance of workers, and the volume of employment in a competitive labor sphere.
- Scrutinize the effects of advancements in technology and alterations in labor supply on the marginal revenue product of labor and the recruitment decisions within corporations.
Verified Answer
PC
Learning Objectives
- Discern the relationship involving wage levels, performance of workers, and the volume of employment in a competitive labor sphere.
- Scrutinize the effects of advancements in technology and alterations in labor supply on the marginal revenue product of labor and the recruitment decisions within corporations.