The Figure Given Below Represents Equilibrium in the Labor Market

question 78

Multiple Choice

The figure given below represents equilibrium in the labor market. Figure 14.5 In the figure,
VMP: Value of marginal product curve
MRP: Marginal revenue product curve
MFC: Marginal factor cost
S: Supply curve of labor
According to Figure 14.5,what is the equilibrium level of employment?

• A)0 units
• B)L₁ units.
• C)L₂ units.
• D)L₃ units.
• E)L₄ units.

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Definitions:

5-Month Note

A short-term financial instrument that matures or is due for payment in five months.

Calculating Interest

The process of determining the cost of borrowing money or the earnings from lending money, based on the principal amount, rate, and time period.

Payee

The individual or entity to whom a payment is to be made or who receives the payment in a financial transaction.