Answer to Question #44879 in Microeconomics for Mrityunjay Singh
A. A single commodity is to be produced in a perfectly competitive market, thus, price of the commodity is given for all firms in the market, goal of the firm being profit maximization.
B. Out of the factors of production, Labour is the only variable factor whose market is also perfectly competitive, hence, price of labour is also given for all firms.
The question is : How does it imply that the supply of labour to the individual firm is Perfectly Elastic ? Please explain.