Wage determination in labour market


Problem:

Illustrate wage determination in the labour market in which workers are unorganized and many firms actively compete for the services of labour. Demonstrate this situation graphically, by using W1 to point to the equilibrium wage rate and Q1 to illustrate the number of workers appointed by the firms as a group. Demonstrate the labour supply curve of individual firm, and compare it with that of the total market. Why the differentiations? In the diagram representing the firm, recognize total revenue, total wage cost, and revenue accessible for the payment of non labour resources.

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Business Economics: Wage determination in labour market
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