Use the figure below to answer the following questions. Figure 17.3.1
-Refer to Figure 17.3.1.This figure shows the value of marginal product of labour curve,the labour supply curve,and the marginal cost of labour curve.If this labour market is competitive,the wage rate is

Question

Use the figure below to answer the following questions.  Figure 17.3.1
-Refer to Figure 17.3.1.This figure shows the value of marginal product of labour curve,the labour supply curve,and the marginal cost of labour curve.If this labour market is competitive,the wage rate is

Quizplus · Accepted Answer

In a competitive labour market, the wage rate will be equal to the value of marginal product of labour curve. At the intersection of this curve and the labour supply curve, the wage rate will be $12 an hour. At this wage rate, the demand for labour will be equal to the supply of labour, and the firms will hire workers up to the point where the wage rate equals the marginal cost of labour. Therefore, the equilibrium wage rate in this market is $12 an hour.

Use the Figure Below to Answer the Following Questions