Perfectly Competitive Labour Markets (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
Which condition is NOT required for a perfectly competitive labour market?
Which condition is NOT required for a perfectly competitive labour market?
Workers negotiate individual wage rates
What does average cost of labour (ACL) represent?
What does average cost of labour (ACL) represent?
Total wage costs divided by workers
In a perfectly competitive labour market, what does MCL equal?
In a perfectly competitive labour market, what does MCL equal?
The wage rate
What role does an individual firm play regarding wages in perfect competition?
What role does an individual firm play regarding wages in perfect competition?
Passive price-taker
What shape is the labour supply curve facing a perfectly competitive firm?
What shape is the labour supply curve facing a perfectly competitive firm?
Perfectly elastic (horizontal)
What is the profit maximisation condition for employment?
What is the profit maximisation condition for employment?
If , what should a profit-maximising firm do?
If , what should a profit-maximising firm do?
Hire more workers
Where is the market equilibrium wage determined?
Where is the market equilibrium wage determined?
Where market supply intersects demand
According to the law of one price, what should happen to identical workers?
According to the law of one price, what should happen to identical workers?
Receive same wage rates
Do perfectly competitive labour markets exist in reality?
Do perfectly competitive labour markets exist in reality?
No, they do not exist