If Firm X is a competitive firm in the market for labor, it has little influence over the wage it pays its employees.

Name: If Firm X is a competitive firm in the market for labor, it has little influence over the wage it pays its employees.
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Question

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In a competitive labor market, individual firms are wage takers because there are many employers and many workers, and no single firm has enough power to influence the wage rate; it must accept the market wage.

If Firm X Is a Competitive Firm in the Market