Figure: Market for Plumbers If the market in this figure is in equilibrium, the hourly wage paid to plumbers is ______ and the marginal product of a plumber is ______.

Question

Figure: Market for Plumbers  If the market in this figure is in equilibrium, the hourly wage paid to plumbers is ______ and the marginal product of a plumber is ______.

Quizplus · Accepted Answer

In equilibrium, the hourly wage paid to plumbers is where the supply curve intersects the demand curve, which is at $40. The marginal product of a plumber is the value of the additional output produced by hiring one more plumber, which in this case is also $40. Therefore, the correct answer is C.

Figure: Market for Plumbers If the Market in This