Which of the following assumptions is made while determining equilibrium wage and labor employed in the economy?

Question

Quizplus · Accepted Answer

The assumption that all person-hours of labor are treated as identical is made while determining equilibrium wage and labor employed in the economy, also known as the competitive model of labor markets. In this model, workers are assumed to have similar skills and abilities, and employers are assumed to consider all workers as substitutes for each other, leading to an equilibrium wage that is determined by the intersection of labor supply and demand curves. Assumptions A, B, and C may be relevant in other models of labor markets but are not essential in the competitive model.

Which of the Following Assumptions Is Made While Determining Equilibrium