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  Market Theory of Wages

The Market Theory of Wages:

The market theory appears at wages as the price of labor. Like all other prices, the wages are determined by market forces of demand and supply.

The supply of labor usually refers to the total number of people obtainable for employment. Some kinds of labor need long periods of training. During that long time period, workers have to sacrifice their earnings. We have to obtain note of the foregone earnings while approximating the cost of labor that determines its supply.

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