The _____ curve for a firm in a perfectly competitive labor market is:
A) marginal revenue product; horizontal.
B) labor demand; horizontal.
C) labor supply; horizontal.
D) labor demand; the same as the marginal revenue curve.

Question

Quizplus · Accepted Answer

In a perfectly competitive labor market, the labor supply curve for a firm is horizontal because the firm is a wage taker and can hire any quantity of labor at the market wage rate.

The _____ Curve for a Firm in a Perfectly Competitive