Final answer:
In a perfectly competitive labor market, labor and other costs of production may not be easily transferable, despite the absence of market power for both employers and workers.
Step-by-step explanation:
In a perfectly competitive labor market, both suppliers of labor and demanders of labor have no market power. This means that employers can hire as many workers as they want at the going market wage, and workers have the flexibility to switch jobs easily.
However, in reality, labor and other costs of production may not be easily transferable, even in a perfectly competitive labor market. Factors such as specialized skills, location, and industry-specific knowledge can make it difficult for workers to transfer to another employer easily. Additionally, certain costs, like training and benefits, may not be easily transferable to a new employer.
Therefore, the statement that if markets were perfect, then labor and other costs of production would be easily transferable is false.