The Figure Given Below Represents Equilibrium in the Labor Market

question 85

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

-If the elasticity of supply of a resource is greater than zero but less than infinity, its income will comprise of:

• A)only economic rent.
• B)only transfer earnings.
• C)salaries and traveling allowances.
• D)both economic rent and transfer earnings.
• E)salaries, traveling allowances, as well as other incentives.

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Definitions:

Marketers

Professionals who are involved in the process of promoting, selling, and distributing a product or service.

Suppliers

Businesses or individuals that provide goods or services to other companies or end consumers.

Purchase Decision-Making

The process through which consumers or organizations decide whether or not to buy a product or service, considering various factors and influences.

Actual Purchase

Actual purchase refers to the completion of buying goods or services, marking a finalized transaction.