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.

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

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