If the wage rate in a purely competitive labor market increases,it will cause the:
A) marginal resource cost curve for a single competitive firm in the industry to shift rightward.
B) marginal resource cost curve for a single competitive firm in the industry to shift leftward.
C) labor supply curve for a single competitive firm to shift downward.
D) labor supply curve for the industry to shift rightward.

Question

Quizplus · Accepted Answer

In a purely competitive labor market, an increase in the wage rate means that the cost of hiring an additional unit of labor (marginal resource cost) increases, causing the marginal resource cost curve for a single competitive firm to shift leftward.

If the Wage Rate in a Purely Competitive Labor Market