In a perfectly competitive labor market, where firms accept the wage as given, what does the marginal cost of labor equal?

Choose the correct answer

Explanation

In a perfectly competitive labor market, firms are wage takers, so the marginal cost of hiring an additional worker equals the total cost of labor, which is the wage rate multiplied by the number of workers. Therefore, the marginal cost of labor corresponds to the total labor cost.

In a perfectly competitive labor market, where firms… — Labour Market | PakQuizHub