The Figure Given Below Represents Equilibrium in the Labor Market

question 41

Multiple Choice

The figure given below represents equilibrium in the labor market with the demand and supply curves of labor. Figure 14.6 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 14.6, what is the wage paid by a monopsonist?

• A)$10
• B)$23
• C)$20
• D)$12
• E)$15

---

Definitions:

Conduct

The manner in which a person behaves, especially in a particular place or situation.

Standard of Care

The degree of prudence and caution required of an individual who is under a duty of care, measured against what a reasonable person would do in similar circumstances.

Particular Expertise

Particular Expertise refers to specialized knowledge or skill in a specific area, often acquired through education, training, or extensive experience.

Doctor

A professional who is qualified to treat people who are ill, specializing in diagnosing and providing treatments to promote and restore health.