The figure given below represents equilibrium in the labor market with the demand and supply curves of labor. Figure 28.6
In the figure,
D = MRP implies demand for labor = Marginal Revenue Product
MFC represents Marginal Factor Cost curve
S represents the supply curve of labor
According to Figure 28.6, if the government imposes a minimum wage of $15, what quantity of labor will a competitive firm and a monopsonist, respectively, hire?
A) 50 and 25
B) 50 and 75
C) 75 and 125
D) 125 and 250
E) 50 and 125
Correct Answer:
Verified
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