The Figure Given Below Represents Equilibrium in the Labor Market

question 33

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

-In Figure 14.5, the firm is:

• A)a monopsonist in the labor market and a perfect competitor in the output market.
• B)a monopsonist in the labor market and a monopolist in the output market.
• C)a perfect competitor in all markets.
• D)a perfect competitor in the labor market and a monopolist in the output market.
• E)either a monopolist or a monopsonist, but not both.

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Definitions:

Public Good

An item or resource that cannot be withheld from anyone and whose consumption by one individual does not diminish its accessibility to others, characterized by being both non-excludable and non-rival.

Private Good

A product or service that is typically consumed by the purchaser and cannot be used or consumed by others.

Utility Function

A mathematical representation in economics depicting the relationship between consumption choices and levels of satisfaction or happiness.

Labatt Ale

A popular brand of beer produced in Canada, known for its history and variety of brews.