Use the Figure Below to Answer the Following Questions

question 95

Multiple Choice

Use the figure below to answer the following questions.

Figure 18.3.2
-Refer to Figure 18.3.2. If the labour market illustrated in this figure becomes competitive, the equilibrium wage rate is ________ and the quantity of labour hired is ________.

• A)$4 per hour; 800 hours
• B)$4 per hour; 400 hours
• C)$7 per hour; 600 hours
• D)$9 per hour; 400 hours
• E)$4 per hour; 680 hours.

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