A decrease in the number of workers hired by a firm could result from
A)an increase in the marginal product of labor.
B)an increase in the marginal revenue product of labor.
C)an increase in the real wage.
D)a decrease in the real wage.

Question

Quizplus · Accepted Answer

An increase in the real wage means it costs more for a firm to hire each worker, potentially leading the firm to hire fewer workers to minimize costs.

A Decrease in the Number of Workers Hired by a Firm