Which of the following is typically the case for companies that operate in product markets where there is relatively little competition from other companies?
A)lower wages and lower profits
B)lower wages and higher profits
C)higher wages and higher profits
D)higher wages and lower profits

Question

Quizplus · Accepted Answer

In markets with little competition, companies often have higher pricing power, which can lead to higher profits. They may also pay higher wages to attract and retain the best talent, especially if their market dominance allows for greater revenue and profit margins.

Which of the Following Is Typically the Case for Companies