Economics, need help please?

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Economics, need help please?

What are some desirable and some undesirable outcomes associated with perfectly competitive labor markets

2007-03-19 18:30:31 · 3 answers · asked by mohotbabe 2 in Social Science ➔ Economics

3 answers

Perfect competition means you will get to equilibrium amount of labour supply equal to demand at the equilibrium wage. However, what if the economy is low and equilibrium wage means your workers are living in poverty? There is not a mechanism within this model to deal with social issues such as poverty.

2007-03-19 19:33:08 · answer #1 · answered by JuanB 7 · 0⤊ 0⤋

Unions that reduce productivity are undesirable.

2007-03-19 19:32:35 · answer #2 · answered by Dr Dee 7 · 0⤊ 1⤋

monopolies are undesirable.

2007-03-19 18:33:25 · answer #3 · answered by metalluka 3 · 0⤊ 1⤋