There are several assumptions that are the basis of the operation of the benchmark competitive labor market.Which of the following is not one of these assumptions?
A)Wage rates are costlessly observable.
B)All jobs are identical.
C)There are no long-term contracts.
D)Compensation is made up of wages and benefits.

Question

Quizplus · Accepted Answer

The assumption that compensation is made up of wages and benefits is not a basis of the operation of the benchmark competitive labor market. In fact, some benchmark models may assume that benefits are not included in compensation or may only consider certain benefits as part of compensation. The other assumptions listed (A, B, and C) are commonly made in benchmark competitive labor market models.

There Are Several Assumptions That Are the Basis of the Operation