Multiple Choice QuestionWhen a firm in a competitive labor market is a wage taker, for each additional unit of labor hired, the total resource cost Blank______.Multiple choice question.decreases by exactly the amount of the constant market wage ratecan no longer be related to the market wage rateincreases by exactly the amount of the constant market wage ratestays constant at the market wage rate

Multiple Choice QuestionIn a purely competitive market for labor, because each firm hires a Blank______ fraction of market supply, it cannot influence the market Blank______.Multiple choice question.small; supplylarge; wagelarge; demandsmall; wage

Multiple Choice QuestionIn a purely competitive labor market, market supply and market demand establish Blank______.Multiple choice question.consumer surplusthe wageratethe interest ratethe final price of goods and services

Multiple Choice QuestionIn a competitive labor market, the MRC of labor is Blank______ the market wage rate.Multiple choice question.greater thanunrelated toless thanequal to

Multiple Choice QuestionThe MRP=MRC rule tells us that in pure competition a firm will hire workers Blank______.Multiple choice question.beyond the point at which the market wage rate (its MRC) is equal to its MRPup to the point at which the market wage rate (its MRC) is equal to its MRPup to the point at which the average of all its resource costs (its MRC) is equal to its MRPup to the point at which the average of all its resource costs (its MRC) is equal to its marginal revenue

Multiple Choice QuestionWhen the relative cost of labor rises, a decision must be made whether to substitute and decrease the use of labor and increase the use of another resource input such as machines in order to produce the same amount of output at a lower cost. This statement describes the Blank______ effect.Multiple choice question.netresourcesubstitutionoutput