-The Figure Above Shows the Demand for and Supply of Labor

question 289

Multiple Choice

-The figure above shows the demand for and supply of labor of students in Smallville. If the minimum wage is set at $4 per hour, how many hours do students work?

• A) 12,000 hours
• B) 9,000 hours
• C) 6,000 hours
• D) None of the above answers is correct.

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Definitions:

Variable Electrical Costs

Costs associated with electricity that vary depending on the amount of usage or consumption over a period.

High-low Method

A technique in cost accounting used to determine the variable and fixed components of a company's costs by analyzing the highest and lowest levels of activity.

Machine Hour

A measure of the amount of time a machine is operated, used in cost accounting to allocate costs to products based on machine usage times.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.