In the market for the factor of production "labor":
A)individuals are the sellers of the good.
B)firms are the buyers of the good.
C)the equilibrium price is called the wage.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

All of the statements are true. In the labor market, individuals are the sellers of their labor (i.e., their work), while firms are the buyers of this labor. The equilibrium price in this market is determined by the intersection of the supply of labor (from individuals) and the demand for labor (from firms), and this price is called the wage.

In the Market for the Factor of Production "Labor