If all jobs and all people are identical in a perfectly competitive labor market, competition will cause the hourly wage rates to be exactly the same.

Question

Quizplus · Accepted Answer

In a perfectly competitive labor market, competition among employers will lead to wage rates being equalized for identical jobs and workers. This is known as the law of one price, which states that in a competitive market, the price of a good or service will be the same across all firms and consumers. Therefore, in this scenario, hourly wage rates would be exactly the same for all jobs and workers.

If All Jobs and All People Are Identical in a Perfectly