The equilibrium wage and quantity of labor in the market for skilled workers is determined by
A)the strength of labor unions.
B)the monopsony power of firms.
C)the demand and supply of labor.
D)the market value created by the output of these skilled workers.

Question

Quizplus · Accepted Answer

The equilibrium wage and quantity of labor in the market for skilled workers is determined by the demand and supply of labor, as in all markets. The demand for labor is influenced by the market value created by the output of these skilled workers and other factors such as technology and demand for the product or service. The supply of labor is influenced by factors such as the number of skilled workers available and their willingness to work at different wages. Labor unions and monopsony power of firms can influence the market, but they are not the only factors in determining the equilibrium wage and quantity of labor.

The Equilibrium Wage and Quantity of Labor in the Market