In a given perfectly competitive labour market,the equilibrium wage:
A) is the same for all workers in that labour market.
B) is always greater than the value of marginal product.
C) results in diminishing marginal product.
D) causes some people to be unemployed.

Question

Quizplus · Accepted Answer

In a perfectly competitive labour market, the equilibrium wage is the same for all workers in that labour market. This is because all workers have the same skills and abilities, and employers are willing to pay the same wage for the same type of work. Therefore, there is no differentiation in wages for workers with different skill levels or experience.

In a Given Perfectly Competitive Labour Market,the Equilibrium Wage