In the context of microeconomics, wage takers are individuals or firms that have no control over the wage rate and must accept it as determined by the market. They have no bargaining power to negotiate higher wages.
Imagine you're at a yard sale where all the items are priced and you can't negotiate. You have to take whatever price is set by the seller without any say in it.
Perfectly Competitive Labor Market: A labor market where there are many buyers (firms) and sellers (workers), with identical products (labor), and no individual buyer or seller has enough influence to affect the market price.
Monopsony: A situation in which there is only one buyer (firm) in a labor market, giving them significant control over setting wages.
Collective Bargaining: The process in which workers, through their unions, negotiate with employers for better wages, working conditions, and benefits as a group.
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