The Figure Given Below Represents Equilibrium in the Labor Market

question 94

Multiple Choice

The figure given below represents equilibrium in the labor market.Figure 14.5
In the figure,
VMP: Value of marginal product curve
MRP: Marginal revenue product curve
MFC: Marginal factor cost
S: Supply curve of labor

-According to Figure 14.5, what is the equilibrium level of employment?

• A)0 units
• B)L₁ units
• C)L₂ units
• D)L₃ units
• E)L₄ units

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Definitions:

Probability Density Function

A function that describes the likelihood of obtaining the possible values that a random variable can assume, used in continuous probability distributions.

Finite Population Correction Factor

A correction applied to standard errors or variances when sampling from a finite population without replacement, to account for the decreased variability.

Population Mean

The average of all the values in a population, calculated as the sum of all values divided by the number of values.

Sample Mean

The arithmetic average of a set of numerical values, calculated by adding them together and dividing by the number of observations.