If a firm operates in a competitive labor market and in a non-competitive output market, then the firm faces
A) a constant wage rate when hiring more labor and a constant price when selling more of its output.
B) an increasing wage rate when hiring more labor but a constant price when selling more of its output.
C) a constant wage rate when hiring more labor but a decreasing price when selling more of its output.
D) an increasing wage rate when hiring more labor but a decreasing price when selling more of its output good.
E) a decreasing wage rate when hiring more labor but a decreasing price when selling more of its output good.
Correct Answer:
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