The demand and supply curves shown below apply to a competitive market for a factor used in the production of widgets. FIGURE 13-2
-Refer to Figure 13-2.If the supply and demand curves for the factor are as shown in the diagram,but the wage being paid is $9,and the market is at point C,
A) the wage is higher than the factor's marginal revenue product,and firms will reduce the amount of the factor employed.
B) the wage is higher than the factor's marginal product,and firms will reduce the amount of the factor employed.
C) the marginal revenue product is not equal to the marginal cost of the factor and firms will increase the amount of the factor employed.
D) the demand curve will shift to the right until equilibrium factor price and quantity are re-established.
E) the demand curve will shift to the left until equilibrium factor price and quantity are re-established.
Correct Answer:
Verified
Q69: The diagram below shows the MRP curve
Q70: The diagram below shows the MRP curve
Q71: The elasticity of supply of computer-game programmers
Q72: Consider a firm's demand for a factor
Q73: The aggregate quantity of labour supplied will
Q75: Consider the following production and cost schedule
Q76: The three diagrams below each show a
Q77: Consider computer programmers as a factor of
Q78: Consider a firm's demand for a factor
Q79: If small changes in incentives can induce
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents