Glossary · Micro · Factor markets

Equilibrium wage

The wage at which the number of workers firms want to hire equals the number who want the job. It sits where the labor demand and labor supply curves cross.

Also called: market wage

Practice reading the labor market graph Taught in: Competitive Labor Markets

Related terms

Labor demand Labor supply Minimum wage

More from factor markets

Backward-bending labor supply Derived demand Marginal factor cost (MFC)Marginal revenue product (MRP)Monopsony

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