Use the Following to Answer Questions

question 25

Multiple Choice

Use the following to answer questions :
Figure: Davina's Labour Supply Choice
-(Figure: Davina's Labour Supply Choice) The figure Davina's Labour Supply Choice shows Davina's time allocation budget line when her hourly wage is $10 or $15 and she has 80 hours to allocate between labour and leisure;it also shows two of her indifference curves for income and leisure.When Davina earns $15 per hour,she works _____ hours and enjoys _____ hours of leisure.

• A) 20;60
• B) 30;50
• C) 40;40
• D) 50;30

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Definitions:

Monopoly Power

The ability of a firm or entity to control or dominate an industry or sector, enabling it to set prices above competitors without losing significant market share.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing brands due to perceived satisfaction and quality.

Economic Efficiency

A condition where resources are allocated in a way that maximizes the net benefit to society, meaning no one can be made better off without making someone else worse off.

Economies of Scale

Cost benefits acquired by businesses due to the size of their operations, which causes a decrease in the cost per output unit as the operation's scale increases.