Question

How does competition among workers affect wages and profits?

Answer 1

Answer - Competition among workers will INCREASE PRODUCTIVITY AND WAGES.

Competition among the workers tend to give more productive employment ,one by improving productivity and second is by driving the allocation of labor to more productive firms within the industry . Further, it brings growth in total factor productivity and GDP that too by creating jobs opposite which is a skeptic believe thinking it would make people loose jobs in long run owing to these factors

Competition among workers will let the hard workers outshine in crowd as a result there wages will rise and as with better productivity the profits of the firm will also rise ,furthermore bringing the scope of expansion for firm

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