If a firm in a competitive labor market offers less than the market wage rate,it will:

Question

Quizplus · Accepted Answer

In a competitive labor market, offering less than the market wage rate will result in the firm attracting too few employees, as workers will seek employment at other firms that offer higher wages. This is because the supply of labor is limited, and firms must offer competitive wages to attract workers. If the firm persists in offering lower wages, it may face difficulties in recruiting and retaining workers, which can adversely affect its productivity and profitability.

If a Firm in a Competitive Labor Market Offers Less