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Refer to the Graph Shown

Question 103

Multiple Choice

Refer to the graph shown. Refer to the graph shown.   If labor supply shifts from S<sub>1</sub> to S<sub>2</sub>, the firm will: A)  reduce employment from q<sub>0</sub> to q<sub>1</sub> to maximize profit where MRP = W. B)  reduce employment from q<sub>1</sub> to q2 to maximize profit where MRP = W. C)  raise employment from q1 to q0 to maximize profit where MRP = W. D)  raise employment from q2 to q1 to maximize profit where MRP = W. If labor supply shifts from S1 to S2, the firm will:


A) reduce employment from q0 to q1 to maximize profit where MRP = W.
B) reduce employment from q1 to q2 to maximize profit where MRP = W.
C) raise employment from q1 to q0 to maximize profit where MRP = W.
D) raise employment from q2 to q1 to maximize profit where MRP = W.

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