The Figure Given Below Represents Equilibrium in the Labor Market

question 83

Multiple Choice

The figure given below represents equilibrium in the labor market with the demand and supply curves of labor. Figure 28.6 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
According to Figure 28.6, what is the wage and quantity of labor hired by a competitive firm?

• A)$12 and 75 laborers
• B)$20 and 75 laborers
• C)$15 and 125 laborers
• D)$10 and 250 laborers
• E)$23 and 50 laborers

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Definitions:

Inventory Methods

Techniques used to determine the cost of goods sold and ending inventory value, such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and weighted average cost.

Days' Sales

A measure often used to evaluate the average time it takes for a company to convert its inventory into sales.

Lower-of-Cost-or-Market

An accounting principle that mandates inventory be recorded at the lower between its historical cost and current market value.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.