Introduction to Labor Markets

What you’ll learn to do: analyze labor markets and how supply and demand interact to determine the market wage rate

Image of a group of men in the early 1900's working on paving a city road.

Just as a firm determines the amount of a product or service to provide based on marginal costs, a firm also makes decisions about employing people based on the marginal productivity of their labor. In this section, you’ll learn about how firms determine how many people to hire.


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