The Following Figure Shows the Demand [D],marginal Revenue [MR],and Supply

question 72

Multiple Choice

The following figure shows the demand [D],marginal revenue [MR],and supply [S] curves in the market for labor.
Figure 17-2
-Refer to Figure 17-2.If union members cartelize the supply side of the market,the deadweight loss associated with the union is shown by the area _____.

• A)ABL₁L₂
• B)BCL₂L₁
• C)W₂AL₂O
• D)ABC

---

Definitions:

Variable Costs

Expenses that fluctuate based on the amount of products or services a company generates.

Net Income

Net Income is the total profit of a company after all expenses and taxes have been deducted from revenue.

Variable Costs

Costs that vary in proportion to the level of production or business activity.

Fixed Costs

Expenses that do not change with the amount of goods or services produced over a short period.