The Following Figure Shows Two Labor Demand Curves, LD₁ and LD₂

question 2

Multiple Choice

The following figure shows two labor demand curves, LD₁ and LD₂, and two labor supply curves, LS₁ and LS₂.

-Refer to the figure above.What is the equilibrium wage rate if the labor demand curve is LD₁ and the labor supply curve is LS₁?

• A) $15
• B) $20
• C) $25
• D) $30

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Definitions:

FIFO Method

An inventory valuation method that assumes the first items placed into inventory are the first sold, standing for "First-In, First-Out."

Work in Process Inventory

Goods and materials that are partially completed in the manufacturing process but not yet ready for sale.

FIFO Method

A inventory valuation method that assumes the first items purchased or produced are the first ones sold, standing for "First In, First Out."

Equivalent Unit

A measure used in cost accounting to represent a portion of a product in terms of a completed unit.