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Figure 18-4 -Refer to Figure 18-4.Assume W₁ = $20 and W₂ =

Question 196

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Figure 18-4
Figure 18-4    -Refer to Figure 18-4.Assume W₁ = $20 and W₂ = $22 and the market is always in equilibrium.Then the shift of the labor demand curve from D₁ to D₂ A) increases the value of the marginal product of labor by $2. B) increases the value of the marginal product of labor by less than $2. C) decreases the value of the marginal product of labor by more than $2. D) does not change the value of the marginal product of labor.
-Refer to Figure 18-4.Assume W₁ = $20 and W₂ = $22 and the market is always in equilibrium.Then the shift of the labor demand curve from D₁ to D₂


A) increases the value of the marginal product of labor by $2.
B) increases the value of the marginal product of labor by less than $2.
C) decreases the value of the marginal product of labor by more than $2.
D) does not change the value of the marginal product of labor.

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