The Equilibrium Wage and Quantity of Labor in the Market

question 91

Multiple Choice

The equilibrium wage and quantity of labor in the market for skilled workers is determined by

• A)the strength of labor unions.
• B)the monopsony power of firms.
• C)the demand and supply of labor.
• D)the market value created by the output of these skilled workers.

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Definitions:

Finished Goods Inventory

The total value of all completed products that are ready for sale at the end of an accounting period, part of a company's current assets.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the good.

Material

Substantial or significant; in accounting, referring to an amount that would influence the decision of an informed user.

Labor

The human effort (physical or mental) contributed to the production of goods and services.