The Following Figure Represents the Equilibrium in the Labor Market

question 49

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
-A monopsonist firm pays a price to a factor that is:

• A)equal to the marginal revenue product of the factor.
• B)greater than the marginal revenue product of the factor.
• C)equal to the marginal factor cost.
• D)greater than the marginal factor cost.
• E)less than the marginal revenue product of the factor.

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Definitions:

World Trade Organization

An international organization that regulates international trade with the aim of ensuring that trade flows as smoothly, predictably, and freely as possible between nations.

Rich Benefits

Substantial or generous advantages or profits gained from a particular situation, occupation, or activity.

Practices and Policies

Established methods of action and formal guidelines within organizations or societies.

Modernization Theory

A social science theory that posits the transition from traditional to modern societies involves systematic development in areas like industry, technology, and governance.