Assuming workers and jobs are identical,if information is perfect and job search and migration are costless,then:
A)labor may or may not flow among employers
B)labor will flow among employers until all wages are equal
C)labor will flow among employers until all economic profits are zero,but wages may be unequal
D)all firms will hire the same number of workers in equilibrium and pay them all the same wage

Question

Quizplus · Accepted Answer

In a world where workers and jobs are identical, perfect information exists, and search and migration costs are zero, labor will flow among employers until all wages are equal. This is because workers have perfect information about the wages offered by different employers and can easily move to a job that pays a higher wage. This competition among employers will continue until all wages are equal, as there would be no incentive for workers to choose one job over another if the wages were the same. Therefore, labor will flow until all wages are equal, and this condition represents the equilibrium state.

Assuming Workers and Jobs Are Identical,if Information Is Perfect and Job