The Figure Given Below Represents Equilibrium in the Labor Market

question 94

Multiple Choice

The figure given below represents equilibrium in the labor market.Figure 14.5
In the figure,
VMP: Value of marginal product curve
MRP: Marginal revenue product curve
MFC: Marginal factor cost
S: Supply curve of labor

-According to Figure 14.5, what is the equilibrium level of employment?

• A)0 units
• B)L₁ units
• C)L₂ units
• D)L₃ units
• E)L₄ units

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Definitions:

Shivering

A rapid, involuntary contraction and relaxation of muscles that produces heat in response to cold.

Brown Fat

A type of body fat that is activated when cold, burning calories to generate heat and help maintain body temperature, containing more mitochondria than white fat.

Peripheral Vasoconstriction

The narrowing of blood vessels in the peripheral parts of the body, a process that helps regulate blood pressure and body temperature.

Ethanol

A type of alcohol used as a fuel, solvent, and in alcoholic beverages.