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In a Perfectly Competitive Labor Market,no Individual Firm's Employment Decision

Question 1

Multiple Choice

In a perfectly competitive labor market,no individual firm's employment decision can affect the market wage because


A) union agreements prevent any firm from altering the wage rate
B) each firm is ignorant of the market wage rate
C) the demand for labor is a derived demand
D) each firm hires a very small portion of the labor services available
E) the wage rate is regulated by the government

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