Question:
What is the non-price factor affecting the following problem?
Market: Hospital
Event: Substantially higher wages are paid to hospital employees with no increase in their productivity
The Non-Price Factors:
1. Technology
2. Production Costs
3. Taxation
4. Weather
5. Expectations of Producers
6. Number of Producers
7. Level of Competition
-------
My Answer:
Level of competition because a small percentage of people are interested in working in hospitals and causes a decrease in employment, which means low competition. By increasing the wages, perhaps more people are willing to pursue a career in hospitals and increase the competition.
-------------------
Is my answer correct?