A firm holds excess labor if it can reduce the amount of labor it employs and still produce the same amount of output.

Name: A firm holds excess labor if it can reduce the amount of labor it employs and still produce the same amount of output.
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Question

Quizplus · Accepted Answer

Excess labor occurs when a firm has more workers than it needs to produce a given level of output. This means that the firm can reduce the amount of labor it employs and still produce the same amount of output, indicating that it has excess labor.

A Firm Holds Excess Labor If It Can Reduce the Amount