Use the Following Graph,which Depicts Mighty Max's Labor Demand for His

question 10

Multiple Choice

Use the following graph,which depicts Mighty Max's labor demand for his duffel bag business,to answer the following questions.The labor demand curve shown is calculated based on a duffel bag price of $10.

-If 80 workers are hired,you know that the wage rate must be

• A) $25.
• B) $20.
• C) $15.
• D) $10.
• E) $5.

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Definitions:

Supply Of Labor

The total number of workforce hours available for work in an economy at a given wage rate.

Perfectly Elastic

A situation where the quantity demanded or supplied changes infinitely in response to any change in price.

Marginal Expenditure Curve

A graphical representation that shows the change in total expenditure incurred by purchasing one additional unit of a good or service.

Economic Rent

Amount that firms are willing to pay for an input less the minimum amount necessary to obtain it.