If the real wage rises: A. the marginal cost of labor falls. B. firms will hire additional labor. C. the marginal benefit of the worker increases. D. firms will hire less labor.…

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asked Sep 22, 2019 230k views

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Nilamo · Answer 1 · 2019-09-28T16:57:00+0000

Answer: Firms will hire less labor

Step-by-step explanation: The demand curve for labor is downward sloping showing an inverse relationship between real wage (w/p) and quantity of labor demanded. Thus, when real wage rises, demand for labor falls. This means that at high real wages the firm will hire less labor.

If the real wage rises: A. the marginal cost of labor falls. B. firms will hire additional labor. C. the marginal benefit of the worker increases. D. firms will hire less labor.…

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