Which of the following is true about the equilibrium market wage?
A) All workers are satisfied with the wage.
B) All employers are satisfied with the wage.
C) There is no unemployment in the market at the equilibrium wage.
D) Competitive employers have market power with respect to the equilibrium wage.

Question

Quizplus · Accepted Answer

At the equilibrium market wage, there is no excess supply or demand for labor, meaning all available workers are employed and there is no unemployment in the market. However, it does not necessarily mean that all workers or employers are satisfied with the wage, or that employers have market power.

Which of the Following Is True About the Equilibrium Market