Which one of the following is generally considered a characteristic of a perfectly competitive labor market?
A)A few workers of varying skills and capabilities
B)Wage-setting behavior by firms
C)Numerous firms hiring labor from the same pool of qualified workers
D)Costly information

Question

Quizplus · Accepted Answer

A perfectly competitive labor market is one in which there are numerous firms hiring from the same pool of qualified workers. This means that workers have many options when it comes to finding employment, and firms must compete with one another to attract and retain workers. In a perfectly competitive labor market, there is no wage-setting behavior by firms, as wages are determined solely by supply and demand. The availability of costly information is not typically considered a characteristic of a perfectly competitive labor market. The presence of a few workers of varying skills and capabilities can indicate imperfect competition, where certain workers may have more bargaining power and influence over wages.

Which One of the Following Is Generally Considered a Characteristic