{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Microeconomics course 2

Microeconomics course 2 - takers,” since neither can...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Microeconomics Chapter 14 Wage rate – price paid per unit of labor services Nominal wage – the amount of money received per hour, day, or year Real wage – the quantity of goods and services a worker can obtain with nominal wages Purely competitive labor market – a market where: numerous firms compete with one another in hiring a specific type of labor, each of many qualified workers with identical skills supplies that of labor, and individual firms and individual workers are “wage
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: takers,” since neither can exert any control over the market wage rate. Monopsony – a market in which a single employer of labor has substantial buying power 1) The demand for labor in those nations is relatively large compared to the supply of labor. 2) If the rate they decide to advertise is too low, no workers will apply. As for workers, if they barter with a rate that is too high, firms will not hire them. 3) (pg. 275)...
View Full Document

{[ snackBarMessage ]}