The Table Below Shows the Labour Demand and Labour Supply

question 41

Multiple Choice

The table below shows the labour demand and labour supply schedules in a competitive labour market. $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Wage Rate } \\\text { (\$/hour) }\end{array} & \begin{array} { c } \text { Quantity } \\\text { Demanded } \\\text { of Labour } \\\text { (hours/month) }\end{array} & \begin{array} { c } \text { Quantity Supplied } \\\text { of Labour } \\\text { (hours/month) }\end{array} \\\hline 10 & 1300 & 500 \\\hline 12 & 1000 & 1000 \\\hline 14 & 800 & 1300 \\\hline 15 & 400 & 1500 \\\hline 17 & 200 & 1800 \\\hline\end{array}$$ TABLE 14- 1
-To a monopsonist in a labour market,the average cost curve of labour

• A)lies below the supply curve of labour.
• B)coincides with the marginal cost curve of labour only below the profit- maximizing wage rate.
• C)lies above the supply curve of labour.
• D)is the supply curve of labour,which lies below the marginal cost curve for labour.
• E)is the marginal cost curve of labour when the supply curve is upward sloping.

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Definitions:

Trilateral

Involving three parties, sides, or aspects; often used in the context of international treaties or agreements.

Mutual Misunderstanding

Mutual misunderstanding occurs when two or more parties have differing interpretations or perceptions about an agreement or situation.

Meeting of the Minds

A mutual agreement or consent among parties in a contract, indicated by a clear understanding and acceptance of essential terms and conditions.

Contract

A legally-binding agreement between two or more parties that outlines obligations and privileges.