Use the Figure Below to Answer the Following Question

question 22

Multiple Choice

Use the figure below to answer the following question. Figure 18.3.3
-Refer to Figure 18.3.3.At any given level of employment for high-skilled and low-skilled workers,the vertical distance between the two supply curves

• A)disappears if there is free entry into the skill market.
• B)disappears if there is equal pay for work of equal value.
• C)is created by discrimination against low-skilled workers.
• D)is the compensation required for the cost of acquiring human capital.
• E)equals the value of marginal product of skill.

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Definitions:

Profit-Maximizing Price

The price at which a company can sell its product to achieve the highest possible profit.

Monopolistic Producer

A market structure where a single producer has the exclusive control over the production and sale of a particular good or service.

Unit Cost Data

Information related to the cost required to produce one unit of a product or service, including materials, labor, and overhead expenses.