It Is Generally More Profitable for a Firm to Pay

question 81

Multiple Choice

It is generally more profitable for a firm to pay workers more than the going wage rate:

• A) in sectors where skills are scarce.
• B) in industries in which worker motivation doesn't really matter.
• C) in areas for which turnover is not very costly.
• D) in cities where there is a surplus of labor.

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Definitions:

Oligopoly

A market structure characterized by a small number of firms that dominate the market, leading to limited competition.

Number of Firms

Refers to the total count of business entities operating in a given market or industry.

Market Characteristics

Features or attributes that define and differentiate specific markets, including structure, competition level, and consumer behaviors.

Duopolists

Two firms that dominate a particular market, often engaging in strategic interaction that impacts pricing, production, and market share.