Marginal resource (labor)cost will exceed the wage rate when there is imperfect competition in the hire of labor.

Question

Quizplus · Accepted Answer

This is true because in imperfectly competitive labor markets, employers have some degree of market power and can therefore set wages lower than the marginal resource cost of labor. This means that in such situations, the marginal resource cost of labor is higher than the wage rate.

Marginal Resource (Labor)cost Will Exceed the Wage Rate When There