Figure 4.4: Labor Market
-In Figure 4.4, MPL represents the ________, $\bar { L }$ represents the ________, and the intersection of the two yields ________.
A) labor supply; labor demand; the equilibrium wage
B) labor demand; labor supply; the equilibrium wage
C) labor supply; labor demand; the equilibrium rental rate of capital
D) labor demand; labor supply; the amount of capital hired
E) None of these answers are correct.

Question

Figure 4.4: Labor Market 
-In Figure 4.4, MPL represents the ________, $\bar { L }$ represents the ________, and the intersection of the two yields ________.
A) labor supply; labor demand; the equilibrium wage 
B) labor demand; labor supply; the equilibrium wage 
C) labor supply; labor demand; the equilibrium rental rate of capital 
D) labor demand; labor supply; the amount of capital hired 
E) None of these answers are correct.

Quizplus · Accepted Answer

MPL (Marginal Product of Labor) typically represents labor demand, $\bar { L }$ represents labor supply, and their intersection yields the equilibrium wage.

Figure 44: Labor Market -In Figure 4 Lˉ\bar { L }Lˉ

Figure 44: Labor Market
-In Figure 4 $\bar { L }$