Given a 3 percent decrease in wages,firm A hires more labor than firm B.It follows that,ceteris paribus,
A) the elasticity of demand for the product that firm A produces is lower than the elasticity of demand for the product that firm B produces.
B) firm A has a lower labor cost-total cost ratio than firm B.
C) firm A has more substitutes for labor than firm B.
D) firm A has higher per-unit costs than firm B.
E) none of the above
Correct Answer:
Verified
Q117: Exhibit 27-7 Q119: Exhibit 27-5 Q126: Promoting from within should _ be regarded Q126: Which of the following can change the Q128: For a given firm, marginal factor cost Q135: Which is the following is most likely Q136: A profit maximizing firm that is a Q155: What is the relationship between the elasticity Q156: The MPP/Price ratio for labor is 25/$5 Q159: As a firm buys more capital and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents