Figure 18-4 -Refer to Figure 18-4.When the Relevant Labour Demand Curve Is

Multiple Choice

Figure 18-4

-Refer to Figure 18-4.When the relevant labour demand curve is D₁ and the labour market is in equilibrium,how can we interpret W₁

A) The value of the marginal product of labour to firms is less than W₁ .
B) The opportunity cost of leisure to workers is greater than W₁ .
C) The wage is W₁ .
D) The price of output is higher at W₁ than at W₂
)