Consider a Firm's Demand Curve for Labour

question 34

Multiple Choice

Consider a firm's demand curve for labour.If a technological change makes it harder to substitute capital for labour,the demand curve for labour

• A)shifts parallel to the left.
• B)becomes less elastic.
• C)becomes more elastic.
• D)shifts parallel to the right.
• E)is not affected.

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Definitions:

Variable Cost

Expenditures that change in line with production or sales quantities, notably labor and materials.

Mixed Cost

A cost consisting of both fixed and variable components, changing in total with the level of activity but remaining constant on a per unit basis only up to a certain level of activity.

Activity

A measure of actions or operations within a process, often used to allocate costs in activity-based costing.

Per Unit

A term referring to the cost, price, or quantity related to one unit of a product or service.