Given a 10 percent increase in wages, firm A cuts back on labor more than firm B. It follows that, ceteris paribus,
A) firm A likely has a higher labor cost-total cost ratio than firm B.
B) firm B likely has a higher labor cost-total cost ratio than firm A.
C) the elasticity of demand for labor is likely higher for firm B than firm A.
D) firm B likely has higher fixed costs than firm A.
E) firm A likely has higher per-unit costs than firm B.
Correct Answer:
Verified
Q138: Exhibit 26-7 Q139: For a given firm, marginal factor cost Q140: The MPP of labor divided by its Q141: Given an 8 percent increase in wages, Q142: When deciding whether a person is "worth" Q144: Marginal productivity theory states that Q145: Which of the following can change the Q146: The elasticity of demand for labor is Q147: Which of the following statements is true? Q148: Which of the following does not affect
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A)firms in price
A)The
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