Solved

The Table Below Shows the Labour Demand and Labour Supply

Question 72

Multiple Choice

The table below shows the labour demand and labour supply schedules in a competitive labour market.  Wage Rate  ($/hour)   Quantity  Demanded  of Labour  (hours/month)   Quantity Supplied  of Labour  (hours/month)  1013005001210001000148001300154001500172001800\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Wage Rate } \\\text { (\$/hour) }\end{array} & \begin{array} { c } \text { Quantity } \\\text { Demanded } \\\text { of Labour } \\\text { (hours/month) }\end{array} & \begin{array} { c } \text { Quantity Supplied } \\\text { of Labour } \\\text { (hours/month) }\end{array} \\\hline 10 & 1300 & 500 \\\hline 12 & 1000 & 1000 \\\hline 14 & 800 & 1300 \\\hline 15 & 400 & 1500 \\\hline 17 & 200 & 1800 \\\hline\end{array} TABLE 14- 1
-To a monopsonist in a labour market,the average cost curve of labour


A) lies below the supply curve of labour.
B) coincides with the marginal cost curve of labour only below the profit- maximizing wage rate.
C) lies above the supply curve of labour.
D) is the supply curve of labour,which lies below the marginal cost curve for labour.
E) is the marginal cost curve of labour when the supply curve is upward sloping.

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