The Following Figure Represents the Equilibrium in the Labor Markets

question 46

Multiple Choice

The following figure represents the equilibrium in the labor markets. Figure 14.4 In the figure,
MFC: Marginal Factor Cost curve
D: Demand or the Marginal Revenue Product curve
S: Supply curve
Refer to Figure 14.4.A competitive labor market will pay the wage rate _____ and hire _____ units of labor.

• A)W₁; Q₁
• B)W₁; Q₂
• C)W₂; Q₂
• D)W₁; Q₃
• E)W₃; Q₁

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