Refer to the graph shown.
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.
Correct Answer:
Verified
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