The Figure Below Shows the Supply Curve for Labor

question 12

Multiple Choice

The figure below shows the supply curve for labor.Figure 16.1

-Why does the labor market have more than one equilibrium wage rate?

• A)Workers differ in their productivities.
• B)Productivity of workers increases initially but later declines.
• C)The labor demand curve is backward bending.
• D)Marginal revenue product of different inputs used by firms vary.
• E)Employers compete among themselves to hire the best workers.

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Definitions:

First-In, First-Out Method

An inventory valuation method where goods first received are the first to be sold or used, assuming that older inventory is sold before newer stock.

Cost Reconciliation Report

A document that analyzes and reconciles the differences between the cost of beginning inventory, the cost of goods manufactured, and the cost of goods sold.

Work in Process Inventory

Goods that are in various stages of completion in the production process but are not yet finished products.

Direct Method

An approach to costing that identifies the variable costs directly attributable to specific cost objects, like products or services.