Refer to Figure 31.2.What is the competitive level of wages and employment?
A)$11 per hour and 50 workers.
B)$9 per hour and 40 workers.
C)$7 per hour and 50 workers.
D)$6 per hour and 40 workers.

Question

Refer to Figure 31.2.What is the competitive level of wages and employment?
A)$11 per hour and 50 workers. 
B)$9 per hour and 40 workers. 
C)$7 per hour and 50 workers. 
D)$6 per hour and 40 workers.

Quizplus · Accepted Answer

According to Figure 31.2, the point where the supply curve and demand curve intersect is at a wage rate of $7 per hour and an employment level of 50 workers. This indicates a competitive level of equilibrium in the labor market, where the quantity of labor supplied equals the quantity of labor demanded at the given wage rate. Therefore, choice C is the correct answer.