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What is equilibrium wage?
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What is equilibrium wage?

What is equilibrium wage?-example-1
User Howard Shane
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25 votes

Answer: The equilibrium wage rate in the industry is set by the meeting point of the industry supply and industry demand curves. In a competitive market, firms are wage takers because if they set lower wages, workers would not accept the wage. Therefore, the have to set the equilibrium wage.

Step-by-step explanation:

User Balaji Natesan
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13 votes

Answer:

This means that the equilibrium wage rate and employment will be determined by the intersection of the horizontal labour supply curve, and the downward sloping MRP (D) curve. The wage rate is determined by the whole market, and this sets the wage rate for all firms in the market.

Step-by-step explanation:

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User Jimmy Bosse
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