Use the following figure to answer the question : Figure 17-2 : shows the demand [D],marginal revenue [MR],and supply [S] curves in the market for labor.

- Refer to Figure 17-2.Under competitive conditions _____ workers are hired at a wage of _____.

Question

Use the following figure to answer the question : Figure 17-2 : shows the demand [D],marginal revenue [MR],and supply [S] curves in the market for labor.

- Refer to Figure 17-2.Under competitive conditions _____ workers are hired at a wage of _____.

Quizplus · Accepted Answer

Under competitive conditions, firms hire workers up to the point where the marginal revenue product of labor (MRPL) equals the wage rate. In Figure 17-2, this occurs at point L1, where the MRPL curve intersects the W1 wage line.

Use the Following Figure to Answer the Question : Figure