Oscar's Flower Shop Maximizes Profits by Hiring Four Workers in a Perfectly

Multiple Choice

Oscar's Flower Shop maximizes profits by hiring four workers in a perfectly competitive labor market.The workers and their VMPLs are Noe, $40; Barbara, $35; Calvin, $27; and Diana, $15.Which of the following statements is true?

A) In equilibrium, each worker is paid his or her VMPL.
B) Each worker is paid a wage equal to the highest VMPL .
C) Each worker is paid $15.
D) We need to know the product price before we can figure out the wage rate.