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The following are correct statements about the Labor Market, based on the model presented in class, EXCEPT: Question 6 options: The Supply for Labor is
The following are correct statements about the Labor Market, based on the model presented in class, EXCEPT: Question 6 options: The Supply for Labor is determined by the Oppportunity Cost of Work from the household sector. The Demand of Labor is generated by Firms and based on the Marginal Productivity of Labor. In equilibrium, the Market Wage (W*) is proportional to the Marginal Productivity of Labor (MPL*) for the workers in the market (L*) At the market equilibrium, the amount of people in the labor force is zero
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