Asked by Alyssa Currie on Jul 04, 2024
Verified
Refer to Figure 14.3.1 above. The quantity traded in this market equals:
A) L1.
B) L2.
C) the same as the competitive quantity.
D) Depends on the wage rate.
Competitive Quantity
is the quantity of goods produced or services offered based on the equilibrium in a competitive market.
Wage Rate
The fixed amount of compensation or payment received by an employee from an employer in exchange for work performed.
Market Quantity
The total amount of a good or service that is bought and sold in a market.
- Acquire knowledge of how marginal expenditure relates to average expenditure in factor market settings.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
A
Explanation :
The quantity traded in this market can be found by looking at the point where the supply curve () intersects with the demand curve (L1). At this point, the quantity traded is equal to the x-coordinate, which is approximately 12. Therefore, the quantity traded in this market equals L1, or choice (A). This is not affected by the wage rate or any other external factors, so choice (D) is not correct. The competitive quantity is not mentioned or relevant to this question, so choice (C) is also not correct.
Learning Objectives
- Acquire knowledge of how marginal expenditure relates to average expenditure in factor market settings.