Which of the following statements regarding the demand for labour is false?
A) If the firm is an monopolist in the product market, the firm's demand curve is flatter than it would be if the firm were operating in a perfectly competitive product market.
B) If a firm is a monopolist in the product market, the firm's demand curve is more elastic than it would be if the firm were operating in a perfectly competitive product market.
C) If a firm is a monopolist in the product market, it may still behave as a wage taker in the labour market.
D) If a firm is a monopolist in the product market, the firm's demand for labour is the same as the industry's demand for labour.
E) If a firm is a monopolist in the product market, it may or may not pay wages which are higher than the case in which the firm operates in a competitive output market.
Correct Answer:
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