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(Figure: The Demand for Bricklayers) Use Figure: The Demand for Bricklayers.The equilibrium market wage for bricklayers is $100.For a profit-maximizing firm at the equilibrium level of output,the VMPLbricklayers:
A) is $200.
B) is equal to the market wage rate.
C) is irrelevant since the firm is a price taker.
D) cannot be determined from the information provided.
VMPL
The value of the marginal product of labor, which is the additional value created from an increase in labor input.
Equilibrium Market Wage
The wage rate at which the quantity of labor supplied and the quantity of labor demanded are equal.
Bricklayers
Tradespeople who lay bricks, concrete blocks, and other types of masonry materials to construct or repair walls, partitions, and other structures.
- Comprehend the principles of market equilibrium, the demand for labor, and the manner in which wages are established within a competitive labor market.
- Acquire knowledge about the condition that leads to maximum profit for companies in terms of labor demand.
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Learning Objectives
- Comprehend the principles of market equilibrium, the demand for labor, and the manner in which wages are established within a competitive labor market.
- Acquire knowledge about the condition that leads to maximum profit for companies in terms of labor demand.
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