Question

explain theory of wages in detail
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Answer 1

Answer:

Given Below

Explanation:

According to this theory, wages are determined by the cost of production of labour or subsistence level. The wages so determined will remain fixed. It actual wages are higher than the subsistence level, then population will increase leading to an increase in labour supply and lower wages.

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Answer 2

Answer:

wages are determined by the cost of production of labour or subsistence level. The wages so determined will remain fixed. It actual wages are higher than the subsistence level, then population will increase leading to an increase in labour supply and lower wages.

Explanation:

is a book by the British economist John R. Hicks published in 1932 (2nd ed., 1963). It has been described as a classic microeconomic statement of wage determination in competitive markets. It anticipates a number of developments in distribution and growth theory and remains a standard work in labour economics.[1]

Part I of the book takes as its starting point a reformulation of the marginal productivity theory of wages as determined by supply and demand in full competitive equilibrium of a free market economy. Part II considers regulated labour markets resulting from labour disputes, trade unions and government action. The 2nd edition (1963) includes a harsh critical review and, from Hicks, two subsequent related articles and an extensive commentary