Figure 18-7 -Refer to Figure 18-7.When the relevant labor supply curve is S 1 and the labor market is in equilibrium,

At equilibrium in the labor market, the wage (A) represents the value of the marginal product of labor to firms (C) and is also the opportunity cost of leisure to workers (B). Therefore, all of the above options are correct.

Figure 18-7 -Refer to Figure 18-7.When the relevant labor supply curve is S 1 and the labor market is in equilibrium,

At equilibrium in the labor market, the wage (A) represents the value of the marginal product of labor to firms (C) and is also the opportunity cost of leisure to workers (B). Therefore, all of the above options are correct.

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Figure 18-7 -Refer to Figure 18-7.When the Relevant Labor Supply Curve Is

Question 303

Multiple Choice

Figure 18-7 Figure 18-7 -Refer to Figure 18-7.When the relevant labor supply curve is S<sub>1</sub> and the labor market is in equilibrium, A) the wage is W<sub>1</sub>. B) the opportunity cost of leisure to workers is W<sub>1</sub>. C) the value of the marginal product of labor to firms is W<sub>1</sub>. D) All of the above are correct.
-Refer to Figure 18-7.When the relevant labor supply curve is S₁ and the labor market is in equilibrium,

A) the wage is W₁.
B) the opportunity cost of leisure to workers is W₁.
C) the value of the marginal product of labor to firms is W₁.
D) All of the above are correct.

Correct Answer: