In response to a wage increase, a manufacturer decides to hire fewer workers. This a microeconomic decision.

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This is a microeconomic decision because it is a decision made by a single manufacturer, and it involves the specific allocation of resources within that firm. The decision to hire fewer workers in response to a wage increase is likely based on the firm's assessment of its own costs and productivity, and it reflects the trade-off between paying higher wages and maintaining profitability.

In Response to a Wage Increase, a Manufacturer Decides to Hire