In a competitive labor market,the equilibrium wage rate is determined by

Question

Quizplus · Accepted Answer

In a competitive labor market, the equilibrium wage rate is determined by the intersection of labor demand and labor supply. At the equilibrium wage rate, the quantity of labor demanded equals the quantity of labor supplied, and there is no excess labor supply or demand. The employers and employees are price takers and do not have the power to influence the wage rate in a competitive labor market. Government regulations can affect the labor market, but they do not determine the equilibrium wage rate.

In a Competitive Labor Market,the Equilibrium Wage Rate Is Determined