Asked by
allen rogers
on Nov 26, 2024
Verified
Other things being equal, the elasticity of demand for labor will be greater the
A) smaller the proportion of total costs accountable for by labor costs.
B) smaller the elasticity of demand for the product it produces.
C) larger the number of close substitute resources available.
D) more rapid the decline in its marginal productivity.
Total Costs
The sum of fixed and variable expenses incurred by a business in the production of goods or services.
Labor Costs
The total sum of all financial compensations and benefits given to employees in exchange for their work, including wages, salaries, and additional perks.
Substitute Resources
Substitute Resources are alternative inputs that can be used in place of another in the production process, often due to cost advantages or availability.
- Recognize the elements influencing the elasticity of resource demand, such as substitute goods and the share of total expenses.
- Acquire an understanding of the relationship between labor cost proportion and labor demand elasticity.
Verified Answer
CN
Learning Objectives
- Recognize the elements influencing the elasticity of resource demand, such as substitute goods and the share of total expenses.
- Acquire an understanding of the relationship between labor cost proportion and labor demand elasticity.