Question

If a firm is a factor price taker in the labor market,a) it will continue to hire workers as long as MFC > MRP. b) it must pay higher wages in order to hire additional workers. c) it must hire all workers who apply for a job. d) it can hire all the workers it wants to at the going wage rate.

Answer 1

d) it can hire all the workers it wants to at the going wage rate.

Step-by-step explanation:

The price taker means the company or an individual is ready to accept the prices that are prevailed in the market

In the case when a firm is a price taker in the labor market also it cannot set the prices as expected. The attached diagram represent the flat supply curve. It hire the workers depend upon the MPR and the factor supply curves

Therefore in the given situation, the last option is correct