Which of the Following Would Prevent a Single Equilibrium Wage

question 19

Multiple Choice

Which of the following would prevent a single equilibrium wage existing across all labor markets?

• A)A competitive labor market.
• B)Workers having various skills and preferences.
• C)Firms being free to enter any of the labor markets.
• D)Potential workers being able to freely enter any of the labor markets.
• E)A payroll tax paid equally by workers and firms.

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Definitions:

Cost-Minimizing

A strategy or approach aimed at reducing expenses to the lowest possible level while achieving the desired output.

Price of Capital

The cost of using capital for production, often measured by the interest rate on borrowed funds or the rate of return required on investment.

Price of Labor

The wages or salary paid to workers for their services, often determined by supply and demand in the labor market.