Economics A-Level
Wage determination
What Wage determination means in Economics A-Level, as defined for AQA.
Definition of Wage determination
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Reference: AQA
The wage is read off the labour supply curve at the profit-maximising quantity, which is lower than the marginal revenue product.
Topics that use Wage determination
- The determination of relative wage rates and levels of employment in imperfectly competitive labour markets (AQA A-Level)
Related terms
- Average Cost of Labour (ACL)
- Imperfect information
- Marginal Cost of Labour (MCL)
- Monopsony power
- Profit maximisation
- Trade unions
- Collective bargaining
Using Wage determination in the exam
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