A perfectly competitive labor market may be characterized by all of the following except:
A)neither firms nor workers have any control over the market wage
B)a few firms that dominate hiring in the market
C)numerous equally qualified workers
D)perfect information

Question

Quizplus · Accepted Answer

A perfectly competitive labor market is one in which firms and workers are price takers, meaning they have no control over the market wage. In addition, there should be numerous equally qualified workers and perfect information. However, the presence of a few dominant firms would signify that the market is not perfectly competitive as they would have some control over the wage.

A Perfectly Competitive Labor Market May Be Characterized by All