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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 603 |
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The ruling equilibrium wage is ?400, the factor earnings above the labour supply curve and below the market wage shows the economic rent accruing to labour in the market. The remainder of the factor earnings is transfer earnings.
As labour supply becomes more elastic more of the earnings of labour are transfer earnings...
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Most workers would work for less than what they are getting paid so in affect are also gaining economic rent but this is on a much lower level. Companies are now starting to offer individual contracts so they can take advantage of the workers that would work for less instead of offering one basic contract to all workers in that area...
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