What does it mean for a firm to be a price taker in the labor market?
What will be an ideal response?
A price taker in the labor market can hire as many workers as it wants without having to offer a higher wage. The supply curve of labor faced by the individual firm is horizontal at the market wage.
Economics
You might also like to view...
A reason that economists keep an eye on both M2 and M1 is because
A) money market accounts are sometimes used like checking accounts and sometimes like savings accounts. B) during a recession, M1 is meaningless. C) M2 is more accurate than M1. D) both fluctuate widely and frequently in total dollar value.
Economics
When transactions costs are low, private actions to correct externalities are usually feasible
a. True b. False
Economics