In an economic model where wages and prices are determined, a decrease in product market competition allows firms to charge higher markups. This situation would cause the price-setting curve to shift upwards, leading to a higher equilibrium real wage.
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In an economic model where wages and prices are determined, a decrease in product market competition allows firms to charge higher markups. This situation would cause the price-setting curve to shift upwards, leading to a higher equilibrium real wage.
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