Suppose the Market for Labor Is Perfectly Competitive and the Demand

question 36

Multiple Choice

Suppose the market for labor is perfectly competitive and the demand for labor is $L = 100 - 10 w$ and market supply is $L = - 20 + 10 w$ .If a minimum wage is imposed at w = 8,the loss to firms will be

• A)20
• B)40
• C)60
• D)80

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Definitions:

Maker

In legal and financial contexts, it refers to the person who creates or signs a promissory note, thus agreeing to pay the note's value.

Dishonored

Refers to a financial instrument, such as a check, that has been presented for payment and refused by the bank or debtor.

Rakestraw v. Rodriguez

A legal case, specifics not provided but typically refers to a landmark or notable case in the context mentioned.

Forged Signature

The act of illegally replicating another person’s signature for deceptive purposes.