Refer to Figure 31.2.What is the competitive level of wages and employment?
A)$11 per hour and 50 workers.
B)$9 per hour and 40 workers.
C)$7 per hour and 50 workers.
D)$6 per hour and 40 workers.

Question

Refer to Figure 31.2.What is the competitive level of wages and employment?
A)$11 per hour and 50 workers. 
B)$9 per hour and 40 workers. 
C)$7 per hour and 50 workers. 
D)$6 per hour and 40 workers.

Quizplus · Accepted Answer

The competitive level of wages and employment is where the supply and demand curves intersect, which is at a wage rate of $7 per hour and an employment level of 50 workers. Therefore, choice C is the correct answer.