The Following Figure Represents the Equilibrium in the Labor Market

question 51

Multiple Choice

The following figure represents the equilibrium in the labor market.Figure 14.4
In the figure,
MFC: Marginal Factor Cost curve
D: Demand or the Marginal Revenue Product curve
S: Supply curve
-According to Figure 14.4, if the government imposes a minimum wage of W₁, what quantity of labor will a competitive labor market hire?

• A)Q₁
• B)Q₂
• C)Q₃
• D)Less than Q₂
• E)Greater than Q₃

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