Considering the third assumption of labor market theory,although some firms find lowering the job requirements and hiring less-skilled workers a better choice than raising wages,this choice incurs:

Question

Quizplus · Accepted Answer

By hiring less-skilled workers, firms may incur increased training costs to bring them up to the necessary skill level. Lowering job requirements may lead to lower marginal productivity and decreased marginal output, but these costs are not as significant as the expenses associated with training new employees. While recruitment costs may increase as well, they are not the main factor to consider in this scenario.

Considering the Third Assumption of Labor Market Theory,although Some Firms