Refer to the Information Provided in Figure 10

question 95

Multiple Choice

Refer to the information provided in Figure 10.3 below to answer the question(s) that follow. Figure 10.3
-Refer to Figure 10.3. The market wage is initially W₁ and the firm is initially at Point B. Labor supply increases from S₁ to S₀. The firmʹs MRP_L curve will shift from MRP_L at K₂ to MRP_L at K₁ because

• A) the factor substitution effect will cause the firm to substitute capital for the lower-priced labor.
• B) the supply of labor increased and therefore the productivity of labor increased.
• C) the output effect led to ann increase in the demand for capital, which in turn increased the productivity of labor.
• D) the firm is no longer maximizing profits.

---

Definitions:

Sulfide Mineral

A mineral compound characterized by the presence of sulfur in combination with metals such as iron, copper, or zinc.

Cube-Shaped Crystals

Crystalline structures that manifest in a cubic shape, common in minerals like pyrite and halite.

Pink-Colored Mineral

Minerals that exhibit a pink hue, often due to the presence of elements like manganese or inclusion of minerals like rhodonite.

Wavy Lines

This term is not typically associated with a standard definition in scientific contexts; it could refer to visual patterns or features that resemble waves.