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

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