If a firm takes the wage as given,then the supply curve of labor to that firm is
A) horizontal.
B) vertical.
C) upward sloping.
D) downward sloping.

Question

Quizplus · Accepted Answer

When a firm takes the wage as given, it means the firm has no power to influence the wage rate, implying it can hire as many workers as it wants at the market wage. This scenario results in a horizontal supply curve of labor to the firm, indicating wage rigidity at the market-determined rate.

If a Firm Takes the Wage as Given,then the Supply