The real wage Awill cause a shift in the labor supply curve
The real wage
| A.will cause a shift in the labor supply curve if it changes | |
| B.always equals the marginal product of labor | |
| C.equals the marginal product of labor when the firm employs the profit maximizing quantity of labor | |
| D.will fall if there is an excess demand for labor |
Solution
C.) Equals the marginal product of labor when the firm employs the profit maximizing quantity of labor.
