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Suppose Workers at the Bakery Discover That a New Firm

Question 128

Multiple Choice

Suppose workers at the bakery discover that a new firm making baseballs came to town and is offering higher wage rates. What will happen in the labor market for bakers?


A) The labor supply curve will shift to the right.
B) Demand for bakers will increase because the MPP of bakers will decrease.
C) The quantity supplied of labor will increase because the wage rate will decrease.
D) The MRP of bakers will increase.
E) The labor supply curve will shift to the left.

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