​The Following Graph Shows the Labor Market

question 74

Multiple Choice

​The following graph shows the labor market. The vertical axis measures wage in dollars, and the horizontal axis measures labor in hours. The opportunity cost of labor in equilibrium equals _____. ​
Figure 11.1

• A)$40
• B)$80
• C)$160
• D)$16
• E)$8

---

Definitions:

Payback

The period of time required for the return on an investment to "repay" the original investment cost.

Discounted Payback

A capital budgeting method that calculates the time required to recoup an investment based on discounted cash flows.

Stockholder Wealth

The total value of all financial assets owned by the shareholders of a company, often measured by the market value of the shares held.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, considering the time value of money.