Figure 18-10 -Refer to Figure 18-10. When the Relevant Labor Demand Curve

question 336

Multiple Choice

Figure 18-10
-Refer to Figure 18-10. When the relevant labor demand curve is D₁ and the labor market is in equilibrium,

• A)the value of the marginal product of labor to firms is less than W₁.
• B)the opportunity cost of leisure to workers is greater than W₁.
• C)the wage is W₁.
• D)All of the above are correct.

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