Asked by
Dedtrick Jones
on Nov 05, 2024
Verified
If the supply of labor decreases, which of the following events will occur?
A) The wage rate will fall and firms will increase employment up until the point where MRP equals the new wage rate.
B) The wage rate will fall and firms will decrease employment to the point where MRP equals the new wage rate.
C) The wage rate will increase and firms will decrease employment to the point where MRP equals the new wage rate.
D) The wage rate will increase and firms will increase employment up until the point where MRP equals the new wage rate.
Supply of Labor
The total amount of labor that workers are willing and able to offer at various wage rates in a given time period.
Wage Rate
The amount of compensation a worker receives per unit of time or per unit of output.
MRP
Material Requirements Planning is a system for planning production schedules and inventory needs.
- Understand the influence of labor supply and demand in determining wages.
Verified Answer
RK
Learning Objectives
- Understand the influence of labor supply and demand in determining wages.