The Following Questions Refer to the graph below.
-If the wage rate is $10,what is the quantity of labor supplied?

Question

The Following Questions Refer to the graph below. 
-If the wage rate is $10,what is the quantity of labor supplied?

Quizplus · Accepted Answer

At a wage rate of $10, the quantity of labor supplied is 22. At this quantity, the marginal cost of labor (MCL) is equal to the wage rate ($10). This is the profit maximizing quantity of labor for the firm, as any quantity higher would result in a higher MCL than the revenue gained from selling an additional unit of output, and any quantity lower would result in a lower output level and therefore lower revenue.

The Following Questions Refer to the Graph Below