In a purely competitive labor market, Multiple choice question. the supply of labor faced by an individual firm is perfectly inelastic. the demand for labor faced by an individual firm is perfectly elastic. the supply of labor faced by an individual firm is perfectly elastic. the supply of labor faced by an individual firm is perfectly unit-elastic.

Respuesta :

Answer:

the supply of labor faced by an individual firm is perfectly elastic.

Explanation:

In the case of the pure or perfectly competitive market when the wage rate is calculated instead by an individual firm so the each and every firm is wage taker this implies that the real equilibrium wage would be set in the market and the labor supply that faced by an individual firm would be perfectly elastic at the market rate

Therefore the third option is correct