Assume That This Graph Illustrates a Perfectly Competitive Labor Market

question 52

Multiple Choice

Assume that this graph illustrates a perfectly competitive labor market. In this market, at a wage of $40:

• A)the market would be in equilibrium.
• B)more people would want to work than number of job openings.
• C)firms would not be able to find enough workers to fill all their positions.
• D)approximately 175 worker hours would be hired.

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Definitions:

Risk-averse

A description of an individual or entity that prefers to avoid risk, often opting for the less risky of available options.

Probability

A measure of the likelihood or chance that a particular event will occur, expressed as a number between 0 and 1.

Expected Total Utility

The sum of satisfaction or benefit that an individual expects to receive from consuming goods or services.

Probability

A measure of the likelihood of a particular event occurring, often expressed as a fraction or percentage.