If an individual firm sells its product in a perfectly competitive market and hires labor in a perfectly competitive labor market, then the firm's
a. demand for labor will be horizontal.
b. supply of labor will be horizontal at the going wage.
c. supply and demand for labor will be horizontal at the same wage rate and the amount of labor employed will be indeterminate.
d. supply-of-labor curve will be backward bending.
Answer: b. supply of labor will be horizontal at the going wage.