In a competitive labor market, with one variable factor, the supply of labor to the firm is:
A) equal to the marginal expenditure curve.
B) equal to the demand curve for labor.
C) greater than the marginal expenditure curve.
D) equal to the marginal revenue product curve.

Question

Quizplus · Accepted Answer

In a competitive labor market, the supply of labor to the firm is equal to the marginal expenditure curve because the firm is a price taker and hires labor at the market wage rate, which is constant.

In a Competitive Labor Market, with One Variable Factor, the Supply