Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 18 - Part VI - The Markets for the Factors of Production - Questions for Review - Page 391: 4

Answer

Each organization employs workers to the point that the worth of the gross output is equal to the wage. When supply and demand are in equilibrium, the marginal product of labor is equal to wages. At that point, the labor market is in equilibrium.

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