Refer to the Graph Shown

Multiple Choice

Refer to the graph shown. If labor supply shifts from S₁ to S₂, the firm will:

A) reduce employment from q₀ to q₁ to maximize profit where MRP = W.
B) reduce employment from q₁ to q2 to maximize profit where MRP = W.
C) raise employment from q1 to q0 to maximize profit where MRP = W.
D) raise employment from q2 to q1 to maximize profit where MRP = W.