Wage Determination 22 In reality wage may set by many ways 221- Collective bargaining between firms and union may be one way he government may set up a minimum wage rate Firms may simply decide a wage rate according to the market condition Or a firm may even pay an efficiency wage( the wage level beyond the condition to keep the worker work efficiently.Wage Determination • In reality, wage may set by many ways. – Collective bargaining between firms and union may be one way. – The government may set up a minimum wage rate. – Firms may simply decide a wage rate according to the market condition. – Or a firm may even pay an efficiency wage (the wage level beyond the condition) to keep the worker work efficiently