Asked by Taryn Unhola on Apr 27, 2024
Verified
Marginal resource (labor)cost will exceed the wage rate when there is imperfect competition in the hire of labor.
Marginal Resource Cost
The extra expense resulting from the consumption of an additional unit of a resource.
- Explore the concepts and effects of efficiency wages and shirking in labor economics.
Verified Answer
TC
Tanner CereghinoApr 29, 2024
Final Answer :
True
Explanation :
This is true because in imperfectly competitive labor markets, employers have some degree of market power and can therefore set wages lower than the marginal resource cost of labor. This means that in such situations, the marginal resource cost of labor is higher than the wage rate.
Learning Objectives
- Explore the concepts and effects of efficiency wages and shirking in labor economics.