When a Competitive Labor Market Is in Equilibrium

question 47

Multiple Choice

When a competitive labor market is in equilibrium:

• A)the marginal product of labor equals the wage rate paid to labor.
• B)workers are paid their marginal value product.
• C)the labor employed by each firm is equal.
• D)the marginal revenue is equal to the wage rate.

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Definitions:

Liability

Legal responsibilities or obligations that arise from actions, transactions, or circumstances.

Reasonable Care

A legal standard that denotes the degree of caution and concern an ordinarily prudent and rational person would use in similar circumstances.

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A special right, immunity, permission, or benefit given to certain individuals that allows them to make any statements about someone without being held liable for defamation for any false statement made, regardless of intent or knowledge of the falsity of the claim.

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The act of making false statements that harm someone's reputation.