Which of the Following Is a True Statement About Competitive

question 22

Multiple Choice

Which of the following is a true statement about competitive labor markets?

• A) Fringe benefits will never arise in a competitive labor market.
• B) Workers of the same skill level will earn different prices.
• C) Payroll taxes are levied on employees.
• D) Adjustments along the intensive margin arise when firms enter the market.
• E) In a competitive labor market,all participants are price takers.

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Definitions:

Total Assets

The sum of all resources owned by a company that have economic value and can be converted into cash, including property, equipment, and cash itself.

Price-Earnings Ratio

A valuation metric comparing a company's current share price to its per-share earnings, indicating investor expectations of growth.

Market Price

The existing cost for purchasing or selling an asset or service.

Net Income

The amount a company earns after deducting every cost, expense, and tax from its total income.