The Figure Given Below Represents Equilibrium in the Labor Market

question 17

Multiple Choice

The figure given below represents equilibrium in the labor market with the demand and supply curves of labor.Figure 14.6
In the figure,
D = MRP implies demand for labor = Marginal Revenue Product
MFC represents Marginal Factor Cost curve
S represents the supply curve of labor

-A firm that was initially a monopsonist, but now has to buy from a competitive resource market will:

• A)buy more amount of resources and pay a higher price for these resources.
• B)buy the same amount of resources and pay a higher price for these resources.
• C)buy less amount of resources and pay a lower price for these resources.
• D)buy less amount of resources and pay a higher price for these resources.
• E)buy more amount of resources and pay a lower price for these resources.

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Definitions:

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.

Adaptive Value

The extent to which a trait or behavior increases the odds of survival and reproduction for an organism in its environment.

Classical Conditioning

The educational process of repeatedly combining two stimuli; a reaction that initially occurs in response to the second stimulus eventually happens in response to the first stimulus alone.

Scientific Methodology

A systematic approach to research in which a problem is identified, relevant data are gathered, a hypothesis is formulated from these data, and the hypothesis is empirically tested.