an employer is competitive in the labour market: It has to pay at least the going wage. The wage level depends on the structure of the product market. It can affect the going market wage by either hiring many workers or laying many workers. It can pay less than the market equilibrium wage.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Question 1
If an employer is competitive in the labour market:
It has to pay at least the going wage.
The wage level depends on the structure of the product market.
It can affect the going market wage by either hiring many workers or laying off
many workers.
It can pay less than the market equilibrium wage.
Transcribed Image Text:Question 1 If an employer is competitive in the labour market: It has to pay at least the going wage. The wage level depends on the structure of the product market. It can affect the going market wage by either hiring many workers or laying off many workers. It can pay less than the market equilibrium wage.
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