In perfect competition:
A. MFCL is greater than the price of labor.
B. the supply curve of labor to the firm is a horizontal line.
C. MRPL equals the price of the good.
D. MFCL is less than the price of labor.
Labor Supply Curve:
The labor supply curve is a curve that shows the amount of labor hours that are supplied at various labor prices. The market supply curve for labor is upward sloping because workers supply more labor at higher prices and low labor at low prices.
Answer and Explanation: 1
- The correct answer is: B. the supply curve of labor to the firm is a horizontal line.
In a perfectly competitive labor market, the individual labor...
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fromChapter 8 / Lesson 4
In economics, labor is subject to the laws of supply and demand. Learn about the labor market in economics. Explore scarcity in labor, review why CEOs make more money than teachers, and examine the impact of market forces on the labor market.