Suppose the supply of capital is relatively inelastic.If capital and labor are gross complements,the labor demand elasticity will be ,but if capital and labor are gross substitutes,the labor demand elasticity will be .
A) high,high
B) low,low
C) low,high
D) high,low
E) zero,zero
Correct Answer:
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Q23: If a firm incurs high fixed costs
Q24: If a firm incurs the same cost
Q25: Adjustment costs:
A) are costs incurred by a
Q26: Suppose capital and labor are gross complements.If
Q27: Which of the following is a true
Q29: Suppose the current level inputs is 20
Q30: If two inputs are gross substitutes,their substitution
Q31: If it is costly for a firm
Q32: Which combination of wages and rental rates
Q33: What are the firm's total costs?
A) $30
B)
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