The intersection of a firm's demand curve for labor and an individual worker's supply curve of labor determines the equilibrium wage rate.

Question

Quizplus · Accepted Answer

The intersection of a firm's demand curve for labor and the market supply curve of labor determines the equilibrium wage rate, not an individual worker's supply curve. Individual workers typically do not have a supply curve that intersects with a firm's demand curve to determine wages; instead, wages are determined at the market level.

The Intersection of a Firm's Demand Curve for Labor and an Individual