Figure 18-1
On the graph, L represents the quantity of labor and Q represents the quantity of output per week.
-Refer to Figure 18-1. The figure illustrates the
A)demand for labor.
B)supply of labor.
C)production function.
D)wage function.

Question

Figure 18-1
On the graph, L represents the quantity of labor and Q represents the quantity of output per week. 
-Refer to Figure 18-1. The figure illustrates the
A)demand for labor. 
B)supply of labor. 
C)production function. 
D)wage function.

Quizplus · Accepted Answer

The graph illustrates the production function as it shows the relationship between the quantity of labor and the quantity of output per week. The shape of the curve illustrates the diminishing marginal returns as additional units of labor are added to the production process. There is no information given about demand or supply of labor or the wage function, so options A, B, and D are incorrect.

Figure 18-1 on the Graph, L Represents the Quantity of Labor and Labor