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4 January, 06:54

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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Answers (2)
  1. 4 January, 07:10
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    D firms will hire less labor
  2. 4 January, 07:12
    0
    Answer: Firms will hire less labor

    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.
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