Why do firms form internal labor markets evaluate the


1. Explain the following quotation: "My employer doesn't determine my salary; he deter- mines where I work."

2. In the basic competitive model, why do employees pay for general training and firms pay for specific training?

3. Why do firms form internal labor markets?

4. Evaluate the following statement: "Firms are free to set salaries in any manner they want in an internal labor market."

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Managerial Economics: Why do firms form internal labor markets evaluate the
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