With reference to Wage Determination in Labour Market, consider the following statements:
1. Wage rate is determined at the intersection of the demand and supply curves of labour.
2. Firm will earn more profit by hiring one more unit of labour as long as the value of the marginal product of labour (VMPL ) is greater than the wage rate.
3. At higher wage, less labour is demanded thereby leading to a downward-sloping demand curve.
Which of the above statements is correct?
1
1 and 2 only
2
2 and 3 only
3
1 and 3 only
4
1, 2 and 3