In Some Remote Communities, There Was Only One Employer in the Local

Multiple Choice

In some remote communities, there was only one employer in the local labor market several years ago, but the number of firms that hired workers in the market increased over time. What is the expected change in the local labor market as the number of employers increased (ceteris paribus) ?

A) Wages and employment increase.
B) Wages remain the same but employment increases.
C) Wages increase but employment remains the same.
D) Wages and employment decline.