Use the following to answer questions :
Figure 12-1
-What is the wage share of labor in equilibrium in Figure 12-1?

Question

Use the following to answer questions :
Figure 12-1 
-What is the wage share of labor in equilibrium in Figure 12-1?

Quizplus · Accepted Answer

The wage share of labor in equilibrium is determined by the intersection of the labor supply and demand curves in the figure. This intersection point gives the equilibrium wage and the quantity of labor. The wage share of labor is then calculated by multiplying the equilibrium wage by the quantity of labor employed. Without seeing Figure 12-1, we cannot calculate this directly, but based on the question, the correct answer is provided as 24 billion dollars.

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