Figure 4-22 -Refer to Figure 4-22.At a Price of $20,there Is a $20,there

question 7

Multiple Choice

Figure 4-22
-Refer to Figure 4-22.At a price of $20,there is a

• A)surplus of 4 units.
• B)surplus of 8 units.
• C)shortage of 4 units.
• D)shortage of 8 units.

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Definitions:

Marginal Product

The growth in production resulting from one more unit of input.

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded in the labor market.

Marginal Product

The additional output resulting from a one-unit increase in the use of a particular input, holding all other inputs constant.

Monopsony

A market condition where there is only one buyer for a product or service, giving them significant control over prices.