Figure 45.1
-In Figure 45.1, the (producer)surplus that employees get at the equilibrium wage-labor combination is

Question

Quizplus · Accepted Answer

Producer surplus in the context of labor markets refers to the difference between what employers are willing to pay for labor and what they actually pay. At the equilibrium wage, this is represented by the area above the supply curve (wage rate) and below the equilibrium wage, which is option C) BW*C.

Figure 45.1 -In Figure 45.1, the (Producer)surplus That Employees Get at the at the Equilibrium