The diagram below shows the supply and demand for labour in a hypothetical town in northern British Columbia,with only one employer,a logging company.
FIGURE 14- 4
-A typical firm hiring in a perfectly competitive labour market faces a labour supply curve that

Question

The diagram below shows the supply and demand for labour in a hypothetical town in northern British Columbia,with only one employer,a logging company.
  FIGURE 14- 4
-A typical firm hiring in a perfectly competitive labour market faces a labour supply curve that

Quizplus · Accepted Answer

In a perfectly competitive labor market, a firm is a wage taker and faces a perfectly elastic (horizontal) labor supply curve at the market wage rate, which coincides with the firm's marginal cost of labor curve.

The Diagram Below Shows the Supply and Demand for Labour