When the supply of labor to a firm is perfectly elastic the marginal factor cost will equal the

Question

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When the supply of labor to a firm is perfectly elastic, it means that the firm can hire as much labor as it wants at the prevailing wage rate. In this situation, the marginal factor cost (MFC), which is the additional cost of hiring one more unit of labor, will be equal to the wage rate. This is because the firm can hire as many workers as it wants without affecting the wage rate, since the supply of labor is perfectly elastic. Therefore, the answer is B) wage rate.

When the Supply of Labor to a Firm Is Perfectly