​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:

Variable Manufacturing

Costs in manufacturing that vary with the level of production output, such as raw materials and direct labor costs.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including expenses like rent, wages, and insurance.

Budgeted Costs

Estimated expenses for a future period, which are prepared for planning and control purposes.

Variable Manufacturing

Costs that vary directly with the level of production output, including direct materials, direct labor, and variable manufacturing overhead.