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AP Microeconomics - Firms’ Behavior under Various Market Structures
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In perfectly competitive labor markets, MRC =
In perfectly competitive labor markets, MRC =
The wage set by the market
What are some characteristics of a perfectly competitive labor market?
What are some characteristics of a perfectly competitive labor market?
Many small firms are hiring workers, there are many workers with identical skills, wages are constant, and workers are wage takers
Why do many small firms hire workers in perfectly competitive labor markets?
Why do many small firms hire workers in perfectly competitive labor markets?
Because no single firm is large enough to manipulate the market
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