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What does this graph of the demand for labor in a perfectly competitive labor market tell you? Firms in this market can hire a selective

What does this graph of the demand for labor in a perfectly competitive labor market tell you?

  • Firms in this market can hire a selective quantity of labor and set the wage rate.

  • Firms in this market have little quantity of labor from which to select and must pay higher than market wages.

  • Firms in this market can hire the quantity of labor wanted at the market wage rate.

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