In the long run, when factors of production are variable, demand for labor tends to be more elastic.

Name: In the long run, when factors of production are variable, demand for labor tends to be more elastic.
Brand: Quizplus
Rating: 4.8 (53 reviews)

Question

Quizplus · Accepted Answer

In the long run, when all factors of production are variable, firms have more flexibility to adjust their use of labor in response to changes in wages, making the demand for labor more elastic compared to the short run, where some factors are fixed.

In the Long Run, When Factors of Production Are Variable