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Unformatted text preview: market wage rate , which is determined by the market demand and market supply of labor. In a perfectly competitive labor market, the individual firm is a wage-taker ; it takes the market wage rate as given, just as the firm in a perfectly competitive product market takes the price for its output as given. The market wage rate in a perfectly competitive labor market represents the firm's marginal cost of labor , the amount the firm must pay for each additional worker that it hires....
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This note was uploaded on 11/19/2011 for the course ECO 1310 taught by Professor Staff during the Fall '10 term at Texas State.
- Fall '10