In a given perfectly competitive labor market,the equilibrium wage:
A)is the same for all workers in that labor market.
B)is always greater than the value of marginal product.
C)results in diminishing marginal product.
D)causes some people to be unemployed.

Question

Quizplus · Accepted Answer

In a perfectly competitive labor market, all workers have the same skills and abilities, making them perfect substitutes for each other. Therefore, the equilibrium wage is the same for all workers in that labor market.

In a Given Perfectly Competitive Labor Market,the Equilibrium Wage