(Figure: Labor in a Competitive Market A) in the Figure

question 38

Multiple Choice

(Figure: Labor in a Competitive Market A) In the figure, if the price of labor is $150, the firm will hire:

• A) five worker.
• B) two workers.
• C) three workers.
• D) four workers.

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Definitions:

Wage Rates

The standard amount of pay given to workers per unit of time, which can vary based on job, location, experience, and skill level.

Payrolls

The total amount of wages and salaries paid by a business or organization to its employees, usually recorded over a specific period of time.

Elasticity of Resource Supply

A measure of how responsive the quantity supplied of a resource is to a change in price.

Elasticity of Product Demand

The degree to which the demand for a product changes in response to a change in its price.