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."
Brand: Quizplus
Rating: 4.7 (40 reviews)

Question

Quizplus · Accepted Answer

In a purely competitive resource market, firms have no power to set the prices for resources, including labor. They must accept the market-determined wage rate, making them "wage takers."

A Firm That Hires Labor in a Purely Competitive Resource