T6 - wages and employments in competitive labour markets Flashcards
1
Q
features of perfectly comp labour market
A
many firms
perfect info about jobs and condition
identifcal jobs
many workers with the same skill
2
Q
what are firms in perfect;y comp markets
A
wage takers
3
Q
because firms are wage takers what does it mean for the supply of labour
A
perfectly elastic
4
Q
what si market equilibrium wage
A
mc = mrp
5
Q
if mrp si greater than wage what should be done
A
more workers hired
6
Q
what dictates the wage level and the point of MC = MR in a perfect comp labour market
A
the wage equilibirum, due to the fact firms are wage taker
