If Firm X is a competitive firm in the market for labour,it has little influence over the wage it pays its employees.

Name: If Firm X is a competitive firm in the market for labour,it has little influence over the wage it pays its employees.
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Question

Quizplus · Accepted Answer

This statement is true. In a competitive labour market, firms have no market power to influence or set the wage rate. They must take the market wage as given and adjust their employment level accordingly.

If Firm X Is a Competitive Firm in the Market