-(Exhibit: Wage Determination in Perfect Competition) Which of the following statements is true? A) The firm's MFC of labor is equal to the price of the firm's output. B) Total employment is equal to L₁, as shown in Panel (a). C) The individual firm is a wage setter. D) The firm will hire L₁ units of labor, as shown in Panel (a).

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DB) Total employment is equal to L₁, as shown in Panel (a). This statement is true because in perfect competition, the equilibrium employment level is determined where the labor supply and labor demand curves intersect, which is typically represented as such in economic diagrams.D) The firm will hire L₁ units of labor, as shown in Panel (a). This is true because a perfectly competitive firm hires labor up to the point where the marginal factor cost (MFC) of labor equals the marginal revenue product (MRP) of labor, which is depicted at the equilibrium point in Panel (a).

-(Exhibit: Wage Determination in Perfect Competition) Which of the Following