In a perfectly competitive labor market, the wage rate paid by the individual firm is

Question

Quizplus · Accepted Answer

In a perfectly competitive labor market, each firm is a price taker and must pay the equilibrium market wage rate to attract workers. This is because there are many firms and workers in the market, and no single firm or worker has the ability to influence the wage rate. Therefore, the wage rate paid by the individual firm is the equilibrium market wage rate.

In a Perfectly Competitive Labor Market, the Wage Rate Paid