Labor Demand and Labor Supply

question 12

Multiple Choice

Labor Demand and Labor Supply

The following questions refer to the accompanying diagram, which shows an industry's labor demand and labor supply. Labor and capital are the only factors used by the industry. The industry hires L units of labor at a wage of PL.


-Refer to Labor Demand and Labor Supply.Suppose firms in the industry earn zero profit.The total rental payment made to the industry's capital is measured by

• A) area A.
• B) area B.
• C) area A + B.
• D) area B + C.

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Definitions:

Aura of Authority

The perceived power or right of an individual or organization to lead and make decisions.

Public Notices

Official announcements or statements issued by the government or other authorities to inform the public about legal or official matters.

Separated

The state of being divided or kept apart from others, can apply to objects, people, or groups within a society.

Arduous Tasks

Activities or jobs that are extremely difficult, requiring a lot of effort and perseverance to complete.