Figure 19-1 -Refer to Figure 19-1. If the Minimum Wage in This

question 434

Multiple Choice

Figure 19-1
-Refer to Figure 19-1. If the minimum wage in this market is $8, then

• A)employment is 10 million
• B)employment is 12 million
• C)there is a surplus of 1 million workers
• D)there is a surplus of 3 million workers

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Definitions:

Average Variable Cost

The variable cost per unit of output, calculated by dividing total variable costs by the quantity of output produced.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or country.

Total Variable Cost

The sum of all costs that vary with output level, including expenses such as labor and raw materials, but not fixed costs like rent.

Output

The total amount of goods or services produced by an individual, firm, or country.