A firm that hires labor in a purely competitive resource market is a
A) "price maker."
B) "product taker."
C) "money maker."
D) "wage taker."

Name: A firm that hires labor in a purely competitive resource market is a A) "price maker." B) "product taker." C) "money maker." D) "wage taker."
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Question

Quizplus · Accepted Answer

A firm that hires labor in a purely competitive market has no bargaining power and must accept the prevailing market wage rate. Therefore, the correct term for such a firm is "wage taker."

A Firm That Hires Labor in a Purely Competitive Resource