The Figure Given Below Represents Equilibrium in the Labor Market

question 24

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 a person is earning $80,000 per year as a dentist and could earn at most $45,000 per year doing something else, his transfer earnings are ____, whereas his economic rent is ____.

• A)$45,000, $35,000
• B)$80,000, $45,000
• C)$45,000, $80,000
• D)$80,000, $35,000
• E)$35,000, $45,000

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Definitions:

Immediate Marketing Environment

This refers to the factors directly influencing a company's capability to serve its customers, including suppliers, intermediaries, customers, competition, and the public.

Macroenvironment

The external and uncontrollable factors that influence an organization's decision-making, and affect its performance and strategies, such as economic, demographic, political/legal, social/cultural, technological, and environmental forces.

Fewer Components

A streamlined approach to product design or manufacturing that minimizes the number of parts used.

Generational Cohorts

Groups of people born in the same period who share similar cultural experiences, attitudes, and values.