Exhibit 11-5 Sally's Labor Supply Data
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​ -Exhibit 11-6 a Perfectly Competitive Labor Market

Exhibit 11-5 Sally's labor supply data
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​ $$\begin{array} { | r | c | } \hline \text { Wage } & \begin{array} { c } \text { Quantity of } \\\text { Labor Supplied (hours) }\end{array} \\\hline \$ 0 & 0 \\5 & 20 \\10 & 30 \\50 & 40 \\100 & 35 \\\hline\end{array}$$
-Exhibit 11-6 A perfectly competitive labor market $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { of Labor } \\\text { (thousands) }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Revenue Product }\end{array} & \begin{array} { c } \text { Total } \\\text { Labor Cost }\end{array} \\\hline 5 & \$ 25.00 & \$ 5.00 \\10 & 20.00 & 10.00 \\15 & 15.00 & 15.00 \\20 & 10.00 & 20.00 \\25 & 5.00 & 25.00\end{array}$$ In Exhibit 11-6, at what wage rate will the firms stop hiring these workers?

A) $25.00.
B) $20.00.
C) $15.00.
D) $10.00.
E) 0.

Correct Answer:

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