The Figure Given Below Represents Equilibrium in the Labor Market

question 39

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

-The value of the marginal product of a resource is equal to:

• A)the marginal revenue of the firm, if the product market is perfectly competitive.
• B)the market price of the product divided by the price of the resource.
• C)the market price of the product divided by the marginal product of the resource.
• D)the marginal revenue product of the resource, if the product market is perfectly competitive.
• E)the marginal product of the resource divided by the price of the resource.

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Definitions:

Cash Flow Hedge

A form of hedge that aims to manage exposure to fluctuations in cash flows related to a particular risk, such as interest rates or foreign exchange rates.

Cash Flow Hedge

A type of hedge that protects against the exposure to variability in cash flows due to a particular risk such as interest rate changes.

Forward Rate

The predetermined price for a transaction that will occur at a specific future date, commonly used in foreign exchange and interest rate markets.

Strike Price

The preset price at which the holder of an option can buy (call) or sell (put) the underlying security.