An increase in the marginal factor cost of labor will

Name: An increase in the marginal factor cost of labor will
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in the marginal factor cost of labor means that the cost of each additional unit of labor has increased. If a firm faces an increase in the cost of hiring additional workers, it will be induced to hire fewer workers. This is because hiring additional workers will now be more expensive, and the firm will try to minimize its costs. Therefore, the correct answer is B.

An Increase in the Marginal Factor Cost of Labor Will