Consider the demand for labor in a perfectly competitive industry.All other things held constant, if the wage rate falls and all firms want to hire more workers, each firm's marginal revenue product curve will:- **A.** increase because as industry output falls, the price of the firm's output will rise.- **B.** decrease because as industry output rises, the price of the firm's output will fall.- **C.** increase because as industry output falls, the price of the firm's output will fall.- **D.** not change as industry employment changes.- **E.** decrease because as industry output rises, the price of the firm's output will rise.Thus, the industry demand for labor in a perfectly competitive industry is $ \boxed{\text{ } } $ the horizontal summation of the individual firm demand curves.

In a perfectly competitive labor market, all firms are wage earners, meaning that they cannot…

Consider the demand for labor in a perfectly competitive industry. all other things held constant, if the wage rate falls and all firms want to hire more workers, each firm's marginal revenue product curve will OA. increase because as industry output falls, the price of the firm's output will rise. OB. decrease because as industry output rises, the price of the firm's output will fall. OC. increase because as industry output falls, the price of the firm's output will fall. OD. not change as industry employment changes. OE. decrease because as industry output rises, the price of the firm's output will rise. mus, the industry demand for labor in a perfectly competitive industry is the horizontal summation of the individual firm demand curves.

Consider the demand for labor in a perfectly competitive industry. all other things held constant, if the wage rate falls and all firms want to hire more workers, each firm's marginal revenue product curve will OA. increase because as industry output falls, the price of the firm's output will rise. OB. decrease because as industry output rises, the price of the firm's output will fall. OC. increase because as industry output falls, the price of the firm's output will fall. OD. not change as industry employment changes. OE. decrease because as industry output rises, the price of the firm's output will rise. mus, the industry demand for labor in a perfectly competitive industry is the horizontal summation of the individual firm demand curves.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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