why is the supply curve for labour in perfectly competitive market horizontal? Watch

Rockgo288
Badges: 11
Rep:
?
#1
Report Thread starter 2 years ago
#1
i know this is quite similar to the perfectly elastic demand curve for individual firm in perfectly competitive market. but what i don't get is that why is the "supply" curve horizontal but not the demand curve for labour horizontal?
i think it like this: in a product market, firms are sellers and consumers are buyers
in a labour market, firms are buyers and workers are sellers
So, in perfectly competitive product market, sellers/firms are price takers so can only sell at market price or else demand for their product will fall to zero, so demand curve is horizontal.

In a perfectly competitive labour market, sellers/workers are wage takers so can only have their wage rate at market wage level or else demand for them will fall to zero. so shouldn't it be the demand curve being horizontal?
But i know the demand curve for labour is downward sloping because of the diminishing return and MRP thing and i get that! pls help me!
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

University open days

  • Trinity Laban Conservatoire of Music and Dance
    Contemporary Dance Undergraduate
    Tue, 19 Nov '19
  • University of Surrey
    All subjects except Veterinary Medicine and Guildford School of Acting Undergraduate
    Wed, 20 Nov '19
  • The University of Law
    Solicitor Series: Discover Your Type of Law - LPC and GDL - Birmingham campus Postgraduate
    Wed, 20 Nov '19

Which party will you be voting for in the General Election?

Conservatives (140)
18.74%
Labour (319)
42.7%
Liberal Democrats (152)
20.35%
Green Party (41)
5.49%
Brexit Party (21)
2.81%
Independent Group for Change (Change UK) (2)
0.27%
SNP (9)
1.2%
Plaid Cymru (6)
0.8%
Democratic Unionist Party (DUP) (1)
0.13%
Sinn Fein (1)
0.13%
SDLP (0)
0%
Ulster Unionist (1)
0.13%
UKIP (7)
0.94%
Other (8)
1.07%
None (39)
5.22%

Watched Threads

View All