I recently read this article which explains how market prices are created:
It explains how the price is determined by four marginal players in the market. I also recently watched some video where someone was refuting labor explotation. He at one point mentioned that a firm doesn’t decide how much to pay its employees. While, of course, this is to an extent an incorrect statement, it holds it the medium-run and is generally accepted as a correct economic statement (even by the mainstream economists).
To make the case clearer, however, I thought “why not apply the clear logic of marginal pairs to the labor market?” It seems like it could irrefutably show that there is no widespread long term exploitation of labor in the free market.
Your thoughts on this? Has it already been tried?