Principles of Microeconomics / Unit 13 MIC 1212 short lesson, about 20 seconds
The Market Wage
Captions available
The idea
Market labor demand is the horizontal sum of firms' demands; market supply, of individuals' supplies. The wage is set where they cross, and each competitive firm takes that wage as its flat supply curve.
In practice
The market sets thirty an hour; the firm chooses hours at thirty.
Where people slip
One buyer among many cannot move the wage; that is why marginal factor cost is constant.
Your place on the trail
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