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:

Cube

A three-dimensional solid object bounded by six square faces or sides, with three meeting at each vertex.

Length

The measurement of something from end to end, typically considered the greatest dimension of an object.

\(f ( x )\)

A notation representing a function f, with x being the input variable.

Function

A relation from a set of inputs to a set of possible outputs where each input is related to exactly one output.