The figure given below represents equilibrium in the labor market with the demand and supply curves of labor. Figure 14.6 
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 14.6, what is the wage and quantity of labor hired by a competitive firm?
A) $12 and 75 laborers
B) $20 and 75 laborers
C) $15 and 125 laborers
D) $10 and 250 laborers
E) $23 and 50 laborers
Correct Answer:
Verified
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