Figure 45.2
-In Figure 45.2, at the perfectly competitive equilibrium, the wage will be

Question

Quizplus · Accepted Answer

At the perfectly competitive equilibrium, the wage will be W*. This is the wage at which the quantity of labor supplied equals the quantity of labor demanded. Neither workers nor employers have any incentive to either increase or decrease the wage. Therefore, the wage will be at the level of W* in a perfectly competitive labor market.

Figure 45.2 -In Figure 45.2, at the Perfectly Competitive Equilibrium, the Wage