6.3 wage determination in perfect competition Flashcards
(4 cards)
1
Q
what is the closest approximation of to perfect competition in the real world?
A
fruit pickers in an area with many orchards
2
Q
what are the characteristics of a perfectly competitive labour market?
A
1)homogenous labour
2)mobility of labour
3)perfect information
3
Q
why do wage differentials exist?
A
1)discrimination
2)trade unions
3)
4
Q
what is true about the supply curve of labour in a perfectly competitive market?
A
S=AC=MC
