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Unformatted text preview: he has control over the labor supply. Therefore the supply curve slopes upwards. The value of Marginal Wage (MW) differs from Average Wage (AW) . Both the MW and AW curves slope upward but MW is above AW. The firm is in equilibrium at point e with MRP = MW. In equilibrium position, N number of workers are employed and the price of the product is P. Exploitation = Total Revenue - Total wage cost = OPeN - OWLN = WPeL...
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- Fall '10
- Supply And Demand, supply curve slopes, marginal revenue product, average revenue product, total wage cost