Imperfect Labour Markets
Imperfect Labour Markets
In a perfectly competitive labour market, many employers compete for workers and the equilibrium wage and employment occur where labour supply meets labour demand, or MRP. Marginal revenue product, MRP, is the extra revenue generated by employing one more worker.
Step-by-step lessons covering AQA A Level Economics 1.6.4 The determination of relative wage rates and levels of employment in imperfectly competitive labour markets for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.