Determination of Wage Rate: The Uselessness of Utility Choice Theory and the Use of Cost Theory
工资率决定：效用选择理论的无用性与成本理论的运用

In the current theories of labor economics, researchers attempt to use marginal utility theory to explain determination of wage rate by deducing labor (work time) supply curve. In this article, however, the writer argues that cost theory, rather than marginal theory, can be used to illustrate the determination of wage rate. The writer sets forward the concepts of contract work labor, extra work labor, contract work wage rate and extra work wage rate, and defines the determination of contract work wage rate by using production cost theory and of extra work wage rate by using chance cost theory.