0
$\begingroup$

In the purchase-leisure trade-off curve, we get the relationship between wage and working hours. But how can we get the relationship between wage and quantity of labor supplied? The demand curve is easy to get, the firms basically stop hiring workers when the wage exceeds the MRPL. But without the supply curve, the wage in the perfectly competitive input market will be hard to get.

$\endgroup$

1 Answer 1

1
$\begingroup$

Number of working hours is the quantity of labor supplied. If you don’t like to measure labor supply in working hours but different metric all you need to do is convert the working hours to desired metric.

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.