Does the pursuit of economic profits exist in labor markets? Give an example.?

Answer 1

Economic profits are those profits above those needed to break even or "normal" profits.

I'd say someone leaving their current job to go to a competitive company offering a better wage would constitute pursuing economic profits. In high tech this happens all of the time. The notion of an equilibrium wage for a given job is hard to apply in the real world since companies are different - have different values or at different places in their existence (a company in the same industry that's just starting up may offer high wages to attract talent whereas a well established company may not offer as high salaries for a comparable position), a person's ability to negotiate a better salary than another comparably skilled worker and responsibilities possibly varying for the same "job title."

So yes, pursuit of economic profits is everywhere. Even staying within your job role you may compete internally with colleagues to earn a raise or a bigger bonus than the next guy.

Answer 2

Economic profit is the increase in wealth that an investor has from making an investment. People can invest in themselves thorough training, education, and even health care, and then reap the return on the investment by gaining a higher wage.