​Figure 52

question 49

Multiple Choice

​Figure 5.2. The figure shows the supply and demand curves of a firm.
-What do you mean by the term 'equilibrium wage'?​

• A)​It is the wage that is determined when potential employers and potential employees are free to transact as they wish.
• B)​It is a wage determined by the government with an intention to narrow the gap between the higher and the lower income groups.
• C)​It is a wage at which the workers refuse to offer labor.
• D)​It is a minimum possible rate that an employer must pay in order to hire a labor.
• E)​It is a wage at which there is an excess supply of workers.

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Definitions:

Significant Barriers

Major obstacles or impediments that prevent new competitors from easily entering an industry or area of business.

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, resulting in surplus gain.

Product Variety

The diversity of different items a firm, industry, or economy produces, providing consumers with multiple options to satisfy their preferences.

Graph Drawing

The process of representing data visually using plots and charts to make the information easier to understand.