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Which of the Following Is an Assumption Made About a Competitive

Question 5

Multiple Choice

Which of the following is an assumption made about a competitive labor market?


A) A firm must offer a higher wage rate to attract more labor.
B) A firm must offer a lower wage rate to attract more labor.
C) A firm cannot influence the market wage rate.
D) The labor supply curve facing each firm is inelastic.
E) Workers compete for jobs and firms pay a variety of wage rates.

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