1. Chapter 4 Labor Market Equilibrium
Order is not pressure which is imposed on society from without, but an equilibrium which is set up from within.
-Jose Ortega y Gasset

2. 4.1 Equilibrium in a Single Competitive Labor Market

3. 4.1 Equilibrium in a Single Competitive Labor Market

4. 4.1 Equilibrium in a Single Competitive Labor Market

5. 4.1 Equilibrium in a Single Competitive Labor Market

6. 4.2 Policy Application

7. 4.2 Policy Application

8. 4.2 Policy Application

9. 4.2 Policy Application

10. 4.2 Policy Application

11. 4.2 Policy Application

12. 4.2 Policy Application

13. 4.2 Policy Application

14. 4.2 Policy Application

15. 4.2 Policy Application

16. 4.2 Policy Application

17. 4.2 Policy Application

18. 4.2 Policy Application

19. 4.3 The cobweb model

20. 4.3 The cobweb model

21. 4.3 The cobweb model

22. 4.4 Noncompetitive Labor Market: Monopsony and Monopoly

23. 4.4 Noncompetitive Labor Market: Monopsony and Monopoly

24. 4.4 Noncompetitive Labor Market: Monopsony and Monopoly

25. 4.4 Noncompetitive Labor Market: Monopsony and Monopoly

26. 4.4 Noncompetitive Labor Market: Monopsony and Monopoly

27. 4.4 Noncompetitive Labor Market: Monopsony and Monopoly

28. 4.4 Noncompetitive Labor Market: Monopsony and Monopoly

29. 4.4 Noncompetitive Labor Market: Monopsony and Monopoly

30. 4.4 Noncompetitive Labor Market: Monopsony and Monopoly

31. Summary
A competitive economy where a homogeneous group of workers and firms can freely enter and exit the market has a single equilibrium wage across all labor markets.
There is no unemployment in a competitive labor market because all workers who wish to work can find a job at the going wage.
A competitive equilibrium leads to an efficient allocation of resources. No other allocation of workers to firms generates higher gains from trade.

32. Summary

33. Summary

34. Summary