Figure 45.1
-In Figure 45.1, the opportunity cost to workers of working at the equilibrium wage-labor combination is

Question

Quizplus · Accepted Answer

The opportunity cost to workers of working at the equilibrium wage-labor combination is represented by the area under the labor supply curve and above the wage line up to the equilibrium quantity of labor. This area reflects the value of the alternative uses of time that workers give up by working. In this case, it is represented by the area OBCL*.

Figure 45.1 -In Figure 45.1, the Opportunity Cost to Workers of Working