Consider the Following Demand and Supply Curves in Factor Markets

question 18

Multiple Choice

Consider the following demand and supply curves in factor markets. FIGURE 13-4
-Refer to Figure 13-4.In diagrams 1 and 4,the marginal worker is earning

• A)transfer earnings only.
• B)economic rent only.
• C)both transfer earnings and economic rent.
• D)a wage greater than the equilibrium market wage.
• E)a wage greater than the worker should receive for the product produced.

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Definitions:

P(x < a)

This denotes the probability that the random variable X takes on a value less than a specific value a.

P(x = a)

The probability of a random variable x taking on a specific value a.

P(x = a)

The probability that the random variable X is equal to some value a.

Continuous Random Variable

A type of random variable that can take an infinite number of possible values in a continuum or interval on the number line.