-The Above Figure Shows a Labor Market with a Minimum

question 17

Multiple Choice

-The above figure shows a labor market with a minimum wage of $8 an hour.How many people are employed when the minimum wage is in place?

• A) 40,000
• B) 60,000
• C) 80,000
• D) fewer than 40,000
• E) more than 80,000

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Definitions:

Unit Variable Costs

The costs that vary directly with the volume of production, such as materials and labor.

Unit Selling Price

The amount customers pay for one unit of a product.

Break-even Point

The point at which total costs and total revenue are equal, meaning the business is neither making a profit nor a loss.

Fixed Costs

Costs that do not fluctuate with changes in production level or sales volume, such as rent and salaries.