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

Question

Quizplus · Accepted Answer

The equilibrium wage and quantity of labour in the market for skilled workers are determined by the demand and supply of labour. The demand for skilled labour is determined by the productivity of the worker and the value created by their output, while the supply of skilled labour is determined by the number of workers with the relevant skills and their willingness to work at different wages. The strength of labour unions and the monopsony power of firms can affect these factors, but the overall equilibrium is still determined by the interaction of demand and supply.

By What Are the Equilibrium Wage and Quantity of Labour