A characteristic of a purely competitive labor market would be:
A) "price-maker" behavior by the firms.
B) "wage-taker" behavior by workers.
C) a few firms competing for labor services.
D) significant differences among workers in the level of work skills.

Question

Quizplus · Accepted Answer

In a purely competitive labor market, there are numerous firms and workers, and no individual or firm has significant market power to influence wages or employment. Therefore, workers have to accept the prevailing wage rate in the industry, hence the term "wage-taker behavior."

A Characteristic of a Purely Competitive Labor Market Would Be