In a competitive market for labour,the equilibrium wage equals the value of the marginal product.

Question

Quizplus · Accepted Answer

In a competitive market for labour, the equilibrium wage is determined by the intersection of the supply and demand curves for labour, and at this equilibrium, the wage equals the value of the marginal product of labour. This is because employers will be willing to pay workers the amount that reflects the additional revenue they generate through their labour, and workers will be willing to work for that wage, given the opportunity cost of their time and other employment options.

In a Competitive Market for Labour,the Equilibrium Wage Equals the Value