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3.5.3 Wage determination in competitive and non-competitive markets

What condition determines the equilibrium wage in a competitive labour market?

A

The equilibrium wage occurs where the supply of labour exceeds the demand for labour, clearing the market.

B

The equilibrium wage occurs where the demand for labour equals the supply of labour, clearing the market.

C

The equilibrium wage occurs where the marginal revenue product equals the wage rate, clearing the market.

D

The equilibrium wage occurs where the demand for labour exceeds the supply of labour, clearing the market.

3.5.3 Wage determination in competitive and non-competitive markets Flashcards

  1. A Level
  2. /Economics
  3. /3.5.3 Wage determination in competitive and non-competitive markets

Flashcards for Edexcel A A Level Economics 3.5.3 Wage determination in competitive and non-competitive markets, covering the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3. 22 cards, matched to the Edexcel A A Level Economics (9EC0) specification.