Figure: Market for Plumbers If the market in this figure is in equilibrium, the hourly wage paid to plumbers is ______ and the marginal product of a plumber is ______.

Question

Figure: Market for Plumbers  If the market in this figure is in equilibrium, the hourly wage paid to plumbers is ______ and the marginal product of a plumber is ______.

Quizplus · Accepted Answer

In equilibrium, the wage rate is determined at the intersection of demand and supply curves, which occurs at a wage rate of $40 in this figure. At this wage rate, the marginal product of a plumber is equal to the wage rate, which is also $40. Therefore, the correct option is C.

Figure: Market for Plumbers If the Market in This