If the labor market is in equilibrium:
a. the marginal rate of substitution between consumption and leisure equals the real wage.
b. the marginal product of labor equals the real wage.
c. both marginal product of labor and marginal rate of substitution between consumption and leisure must be equal to the real interest rate.
d. the marginal rate of substitution between consumption and leisure equals the marginal product of labor.
The economic conceptualities of the labor market are well covered in both aspects of economics whether the aspect is microeconomics or macroeconomics. The labor market exhibits growth in a nation as it is quite difficult for the producers to carry out the production without labor.
Answer and Explanation: 1
b. the marginal product of labor equals the real wage
In the labor market equilibrium, there is one condition that validates the equality forces of...
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fromChapter 3 / Lesson 41
Learn the labor market definition and what happens in the labor market. See what the split labor market theory is and learn the different types of labor market.