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Product markets and labor markets

Relative to firms which are price takers in both the product markets and labor markets, firms through market power in both the product markets and labor markets tend to. (1) Hire fewer workers and pay them less. (2) Rely more heavily on the screening and signaling throughout hiring processes. (3) Be less vulnerable to employee’s efforts to organize the unions. (4) Pay lower wages however hire more workers. (5) Need higher levels of the human capital before employing the worker.

Find out the right answer from the above options.

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