Question
How is the wage rate determined in a perfectly competitive labour market?
✓
Answer
The wage rate determined in a perfectly competitive labour market by the intersection of demand and supply of labour.
$D_L = S_L$‘ it occurs equilibrium at point $E$. It define equilibrium wage and optimal amount of labour. Therefore. $OW$ is the wage rate in a perfectly competitive market.
$D_L = S_L$‘ it occurs equilibrium at point $E$. It define equilibrium wage and optimal amount of labour. Therefore. $OW$ is the wage rate in a perfectly competitive market.
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