4. Consider the following graph for the return to labor cultivating agricultural land. Return to Labor 70 40 If the resource is privately owned: (a) The employment level = (b) The surplus = 20 If the resource is publicly owned: (c) The employment level = (d) The surplus = MP 35 Wage AP₁ Labor

4. Consider the following graph for the return to labor cultivating agricultural land. Return to Labor 70 40 If the resource is privately owned: (a) The employment level = (b) The surplus = 20 If the resource is publicly owned: (c) The employment level = (d) The surplus = MP 35 Wage AP₁ Labor

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 6CQQ

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Concept explainers

Explicit and Implicit Cost Analysis

The entire idea of the cost of production or production cost is applied corresponding or we can say that it is related to money cost. Money cost refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factors of production or factor services.

Question

4. Consider the following graph for the return to labor cultivating agricultural land.
Return to Labor
70
40
If the resource is privately owned:
(a) The employment level =
(b) The surplus =
20
If the resource is publicly owned:
(c) The employment level =
(d) The surplus =
MP₂
I
35
Wage
APL
Labor

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