Solved

As the Wage Rate Rises,firms Will Respond by

Question 10

Multiple Choice

As the wage rate rises,firms will respond by


A) hiring more workers because a higher wage rate will make workers work harder, thus increasing profits for the firm.
B) hiring fewer workers because the labor demand curve slopes downward.
C) selling more output to cover the additional costs of the labor force.
D) selling the same amount of output, but passing on the higher labor costs to the customer in the form of higher prices.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents