A characteristic of a purely competitive labor market would be
A) "price-maker" behavior by the workers.
B) "wage-taker" behavior by workers.
C) many firms selling the same product.
D) many workers with different skills.

Question

Quizplus · Accepted Answer

In a purely competitive labor market, there are many firms and many workers, and workers are "wage-takers" because they have no power to negotiate wages and must accept the going market wage. "Price-maker" behavior by the workers is not a characteristic of a purely competitive labor market. The number of firms selling the same product and the different skills of workers may or may not be characteristics of a purely competitive labor market.

A Characteristic of a Purely Competitive Labor Market Would Be