Given a 10 Percent Increase in Wages,firm a Cuts Back

question 97

Multiple Choice

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 has a higher labor cost-total cost ratio than firm B.
• B) firm B has a higher labor cost-total cost ratio than firm A.
• C) the elasticity of demand for labor is higher for firm B than firm A.
• D) firm B has higher fixed costs than firm A.
• E) firm A has higher per-unit costs than firm B.

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Definitions:

Meniere's Disease

An ailment affecting the inner ear that leads to intense vertigo, tinnitus (ear ringing), diminished hearing capacity, and a sensation of pressure or blockage in the ear.

Inner Ear

The innermost part of the ear, containing the cochlea and vestibular system, responsible for hearing and balance.

Vertigo

A sensation of spinning or feeling like one's surroundings are spinning, which can be a symptom of various disorders.

Tinnitus

A condition characterized by hearing noises in the ears when no external sound is present, often described as ringing, buzzing, or humming.