If the Firm Operates in a Competitive Labor Market

Multiple Choice

If the firm operates in a competitive labor market,

A) it faces a positively sloped labor supply curve, and the marginal expense of labor is less than the market wage.
B) it faces a horizontal labor supply curve, and the marginal expense of labor equals the market wage.
C) it must compete against other employers by offering a generous compensation package.
D) it faces a vertical labor supply curve, and it competes against other employers by moving to the lowest attainable point on the labor supply curve.