The Figure Given Below Represents Equilibrium in the Labor Market

question 85

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 the elasticity of supply of a resource is greater than zero but less than infinity, its income will comprise of:

• A)only economic rent.
• B)only transfer earnings.
• C)salaries and traveling allowances.
• D)both economic rent and transfer earnings.
• E)salaries, traveling allowances, as well as other incentives.

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Definitions:

Project NPV

This refers to the net present value specifically calculated for a given project, representing the difference between the project's cash inflows and outflows discounted at a particular rate over time.

Probability Distribution

A mathematical function that provides the probabilities of occurrence of different possible outcomes in an experiment.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean.

Capital Budgeting

The procedure a company follows to assess possible significant projects or investments.