If the supply of labor in a purely competitive labor market increases, then the product

Question

Quizplus · Accepted Answer

In a purely competitive labor market, individual employers are wage takers, meaning they have no control over the wage rate and must accept the market wage. As the supply of labor increases, the market wage will decrease, resulting in lower labor costs for the employer. This incentivizes employers to hire more workers, which means the supply curve for a single employer will shift to the right, as they will be willing to hire more workers at a lower wage.

If the Supply of Labor in a Purely Competitive Labor