Labor market comparisons are more important than product market comparisons when
A)product demand is elastic.
B)the costs of recruiting replacements are low.
C)attracting and retaining qualified employees is difficult.
D)the supply of labor is inelastic.
E)employee skills are specific to the product market.

Question

Quizplus · Accepted Answer

Labor market comparisons are more important when attracting and retaining qualified employees is difficult. This suggests a competitive labor market where companies must offer attractive wages, benefits, and working conditions to attract and retain skilled workers. In contrast, product market comparisons are more important when product demand is elastic or when employee skills are specific to the product market.

Labor Market Comparisons Are More Important Than Product Market Comparisons