The equilibrium wage rate in an industry is found by

Question

Quizplus · Accepted Answer

The equilibrium wage rate in an industry is found by the intersection of the market demand curve for labor and the market supply curve of labor. This point represents the price and quantity at which the quantity of labor demanded equals the quantity of labor supplied, ensuring a balance between buyers and sellers in the market. Here, wage rates will adjust to accommodate for the excess demand or supply of labor, until equilibrium is reached. Choices A and B are not accurate because they refer to a specific firm or industry, while the equilibrium wage rate is a market-wide phenomenon. Choice D is also incorrect because it assumes that negotiations between union leaders and managers solely determine the equilibrium wage rate, without considering broader market forces.

The Equilibrium Wage Rate in an Industry Is Found by