The Following Figure Represents the Equilibrium in the Labor Markets

question 17

Multiple Choice

The following figure represents the equilibrium in the labor markets. Figure 14.4 In the figure,
MFC: Marginal Factor Cost curve
D: Demand or the Marginal Revenue Product curve
S: Supply curve
Refer to Figure 14.4.If the government imposes a minimum wage of W₂, how many units of labor will a monopsonist hire?

• A)Q₂
• B)Between Q₂ and Q₃
• C)Q₁
• D)Q₃
• E)Between Q₁ and Q₂

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