A donair shop hires workers to make donairs and sell them to customers.If the firm is competitive in both the market for donairs and in the market for donair makers,what control does it have over the price of donairs and the wage it pays to its workers

Question

Quizplus · Accepted Answer

A competitive market implies that the firm has no control over the price of donairs, as it must sell its product at the prevailing market price. Similarly, in a competitive labor market, the firm has no control over the wage it pays to its workers, as it must offer wages that are competitive with those offered by other employers in the market. Therefore, the firm has no control over either the price of donairs or the wage it pays to its workers.

A Donair Shop Hires Workers to Make Donairs and Sell