-In the Above Figure, What Would Be the Wage Paid

question 382

Multiple Choice

-In the above figure, what would be the wage paid and quantity of labor employed under competitive market conditions compared to monopsony conditions?

• A) W₁ and L₁ with competition versus W₂ and L₂ with monopsony
• B) W₂ and L₂ with competition versus W₁ and L₁ with monopsony
• C) W₂ and L₂ with competition versus W₃ and L₁ with monopsony
• D) W₃ and L₃ with competition versus W₃ and L₁ with monopsony

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Definitions:

Manufacturing Firm

A business that uses components, parts, or raw materials to make a finished good.

Marginal Cost

The cost of producing one additional unit of a product or service, used in economics to determine the optimum production level.

Output

The quantity of goods or services produced by a firm, sector, or economy.

Total Variable Costs (TVC)

TVC refer to the costs that vary directly with the level of output produced, including expenses such as materials and labor.