The Following Figure Represents the Equilibrium in the Labor Market

question 38

Multiple Choice

The following figure represents the equilibrium in the labor market.Figure 14.4
In the figure,
MFC: Marginal Factor Cost curve
D: Demand or the Marginal Revenue Product curve
S: Supply curve
-A monopolist hiring labor in a perfectly competitive resource market is faced with a:

• A)perfectly elastic demand curve for labor.
• B)horizontal marginal factor cost curve.
• C)perfectly inelastic demand curve for labor.
• D)vertical supply curve of labor.
• E)positively sloped marginal factor cost curve.

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