The higher the labor cost to total cost ratio, the lower the elasticity of demand for labor.

Name: The higher the labor cost to total cost ratio, the lower the elasticity of demand for labor.
Brand: Quizplus
Rating: 4.9 (56 reviews)

Question

Quizplus · Accepted Answer

The elasticity of demand for labor is primarily influenced by the substitutability of labor with other factors of production and the elasticity of demand for the final product, not directly by the labor cost to total cost ratio.

The Higher the Labor Cost to Total Cost Ratio, the Lower