Suppose the following conditions existed in the Canadian labour market:
1) All labour is mobile and possesses the same skills.
2) Non- monetary advantages are the same across industries and occupations.
3) The demand conditions for labour are the same across industries. In this situation, we expect wage rates to
A) differ because of the desirability of the location of the job.
B) be the same in all industries.
C) be the same in most industries.
D) have equilibrium differentials.
E) be higher in some industries than in others.

Question

Quizplus · Accepted Answer

In this situation, with all labour being mobile and possessing the same skills, non-monetary advantages being the same, and demand conditions for labour being the same across industries, there would be perfect competition in the labour market. This means that wage rates would be the same in all industries, as employers would have to pay the same wage to attract workers.

Suppose the Following Conditions Existed in the Canadian Labour Market