Given a 10 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 likely lower than the elasticity of demand for the product that firm B produces.
B) firm A likely has a lower labor cost-total cost ratio than firm B.
C) firm A likely has more substitutes for labor than firm B.
D) firm A likely has higher per-unit costs than firm B.
E) none of the above
Correct Answer:
Verified
Q144: Marginal productivity theory states that
A)firms in price
Q145: Which of the following can change the
Q146: The elasticity of demand for labor is
Q147: Which of the following statements is true?
A)The
Q148: Which of the following does not affect
Q150: For wage rates to be the same
Q151: As the wage rate rises,
A)the supply of
Q152: Which of the following statements is true?
A)A
Q153: Factor X is used in the production
Q154: Which of the following statements is false?
A)There
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