Oscar's Flower Shop maximizes profits by hiring four workers in a perfectly competitive labor market.The workers and their VMPLs are Noe, $40; Barbara, $35; Calvin, $27; and Diana, $15.Which of the following statements is true?
A)In equilibrium, each worker is paid his or her VMPL.
B)Each worker is paid a wage equal to the highest VMPL .
C)Each worker is paid $15.
D)We need to know the product price before we can figure out the wage rate.

Question

Quizplus · Accepted Answer

The Answer of Oscar's Flower Shop maximizes profits by hiring four workers in a perfectly competitive labor market.The workers and their VMPLs are Noe, $40; Barbara, $35; Calvin, $27; and Diana, $15.Which of the following statements is true?
A)In equilibrium, each worker is paid his or her VMPL.
B)Each worker is paid a wage equal to the highest VMPL .
C)Each worker is paid $15.
D)We need to know the product price before we can figure out the wage rate.

Oscar's Flower Shop Maximizes Profits by Hiring Four Workers in a Perfectly