197k views
5 votes
In a labor market comprising many firms hiring many workers with identical skills, which of the following is correct?

1 Answer

2 votes

Answer:

Individual firms and workers are wage takers because they cannot exert any control over the market wage rate.

Step-by-step explanation:

Remember, a labor market shows the availability of employment and labor, in terms of their supply and demand.

This scenario occurs in a purely competitive labor market.

In this market there many qualified workers with identical skills; meaning the workers share similar skills while the demand for such skills is high because of their importance to firms.

User Serak Shiferaw
by
6.6k points