Asked by Jazzy Asberry on Jul 25, 2024
Verified
Answer the question on the basis of the following supply information facing a single firm in a particular labor market: Wage Quantity Rate Supplied $51102153204255\begin{array}{l}\text { Wage }\quad\quad{Quantity }\\\begin{array} { c c c } \text { Rate } && \text { Supplied } \\\hline\$ 5 & & 1 \\10 & & 2 \\15 & & 3 \\20 & & 4 \\25 & & 5\end{array}\end{array} Wage Quantity Rate $510152025 Supplied 12345 Refer to the given information.This labor supply curve demonstrates that:
A) the firm is selling its output under imperfectly competitive conditions.
B) the firm is selling its output under purely competitive conditions.
C) higher wage rates must be paid to successive workers to overcome their higher opportunity costs.
D) the firm is hiring labor under purely competitive conditions.
Labor Supply Curve
A graphical representation showing the relationship between the wage rate and the quantity of labor workers are willing to offer.
Wage Rate
The fixed amount of compensation paid to an employee by an employer in exchange for work performed, typically expressed per hour, day, or piece produced.
- Identify the approach used by enterprises to decide on the number of employees and wage levels in competitive as opposed to monopsonistic markets.
Verified Answer
AI
ABAALA IKARAJul 26, 2024
Final Answer :
C
Explanation :
The labor supply curve shows that as the wage rate increases, the quantity of labor supplied also increases, indicating that higher wages are needed to attract additional workers, likely due to their higher opportunity costs.
Learning Objectives
- Identify the approach used by enterprises to decide on the number of employees and wage levels in competitive as opposed to monopsonistic markets.
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