A decrease in the wage rate will changea ) only the amount of labor hired.b ) the amount of labor employed, and it may also change the amount of other inputs employed.c ) the price the firm charges for the product, but it will not affect the demand for any of the inputs.d ) the firmʹs profit-maximizing level output, but not its usage of inputs.

A profit-maximizing firm operating in the perfectly competitive market structure hires labor up to a…

Answered: A decrease in the wage rate will change…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A decrease in the wage rate will change

a )

only the amount of labor hired.
b )

the amount of labor employed, and it may also change the amount of other inputs employed.
c )

the price the firm charges for the product, but it will not affect the demand for any of the inputs.
d )

the firmʹs profit-maximizing level output, but not its usage of inputs.

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