Refer to the Graph Shown

question 79

Multiple Choice

Refer to the graph shown. If suppliers can restrict output from M to L, the price will:

• A) fall from PL to PM.
• B) fall from PM to PL.
• C) rise from PL to PM.
• D) rise from PM to PL.

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Definitions:

Perfectly Competitive

A market structure where many firms offer products that are similar and entry into the market is relatively free of barriers.

Labor Market

A trading area where job seekers and employers meet, defined by labor supply and demand.

Wage Rate

Wage Rate is the standard amount of compensation for labor, paid on an hourly, daily, or piecework basis.

Labor Hired

The process of employing individuals to perform various tasks within a business or organization.