In a competitive labor market in which the output market is competitive,the equilibrium wage we is given by the intersection of the demand for labor(marginal revenue product)curve and the supply of labor(average expenditure)curve.This is point A in part (a)of the figure.In a competitive labor market in which the output market is competitive, the equilibrium wage wc is given by the intersection of the demand for labor (marginal revenue product) curve and the supply of labor (average expenditure) curve. This is point A in part (a) of the figure