The Figure Given Below Represents Equilibrium in the Labor Market

question 45

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

-Which of the following statements is not true?

• A)Assuming a perfectly competitive labor market, a firm selling in a monopolistic product market will have a lower marginal revenue product curve than a firm in a perfectly competitive product market.
• B)The intersection of market-labor supply with market-labor demand establishes equilibrium in a perfectly competitive labor market.
• C)In monopsonistic labor markets, an individual firm faces a positively sloped labor-supply curve.
• D)In a perfectly competitive labor market, an individual firm can hire as many workers as it needs at the equilibrium wage rate
• E)In a monopsonistic labor market, marginal revenue product is equal to the value of marginal product.

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Definitions:

Zoning Restrictions

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Intangible Costs

Costs that are not directly measurable in monetary terms, such as brand value, intellectual property, and customer relationships.

Factor-Rating Analysis

A method for comparing the desirability of multiple options or locations based on a set of criteria, each weighted according to its importance.

Facility Location

The process of determining the most suitable location for a company’s manufacturing or service operation for optimization of its efficiency and effectiveness.