-The Table Above Gives Information About the Labour Market in Lantis

question 137

Multiple Choice

-The table above gives information about the labour market in Lantis, a community in which the labour market is perfectly competitive. If the value of marginal product of labour increased by $10 an hour at all quantities of labour, the equilibrium wage rate _______ an hour and the quantity of labour employed _______.

• A) stays at $15; decreases to 300 hours
• B) rises to $10; increases to 600
• C) rises to $20; increases to 500 hours
• D) None of the above answers is correct.

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Definitions:

Cash Cycles

The process that covers the time span between a company’s outlay of cash for materials and the collection of cash from customers for goods or services sold.

Inventory Period

The average length of time items remain in inventory before being sold, indicating the efficiency of a company's inventory management.

Producing Goods

The process of creating, manufacturing, or assembling products or goods from raw materials or components.

Demand

The consumer's desire and willingness to pay a price for a specific good or service.