If the Graph Shown Is Displaying a Competitive Market and the Market

question 1

Multiple Choice

If the graph shown is displaying a competitive market and the market is currently offering a wage more than P*:

• A) there would be a surplus of workers who want to work at that wage.
• B) there would not be unemployment in the market.
• C) firms would have a hard time finding workers.
• D) equilibrium would be achieved.

---

Definitions:

Revenue Variance

The difference between the actual revenue earned by a business and its expected (or budgeted) revenue, which can be favorable or unfavorable.

Sales Revenue

The income received by a company from its sales of goods or the provision of services before any expenses are deducted.

Actual Level

The real, observed state or value of a variable or metric at a given point in time, opposed to theoretical or planned levels.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.