When a firm faces a labour supply curve that is upward- sloping, the firm must
A) maximise the amount of labour it hires.
B) pay a wage that exceeds the value of marginal product.
C) pay a wage that does not exceed the minimum wage.
D) offer a higher wage if it wishes to hire more workers.

Question

Quizplus · Accepted Answer

An upward-sloping labor supply curve indicates that to attract more workers, a firm must offer higher wages. This is because, as wages increase, more individuals are willing to work or existing workers are willing to offer more hours of their labor.

When a Firm Faces a Labour Supply Curve That Is