Wages & Labor Question (Microeconomics) - Check Work?

Question

Consider a salt mine operating near a town in rural Utah. The mine is the only employer in the town, and there are very few potential workers around. Indeed, most of the residents of the town choose to commute over 50 miles to the nearest city, where they work for anywhere between $5 to $20 per hour.

In order to attract 100 workers, the salt mine must offer a wage of $6 per hour. If it wants to attract 200 workers, it must offer a wage of $10 per hour. From this, we can gather that:

A. The firm faces decreasing marginal factor costs

B. The firm operates in a perfectly competitive environment

C. The firm faces increasing marginal factor costs

D. The firm is a factor price taker

My Answer: is D the answer? (because firm can buy all the factors it wants at an equilibrium price?)

Answer 1

D. The firm is a factor price taker

You are right.

B is false because firm should set different wage to attract more workers (so supply of labor is not perfectly-competitive).

A and C are false because we don't know marginal product for each worker.

D is right by definition for "price-taker"