Which of the Following Statements Is True

question 148

Multiple Choice

Which of the following statements is true?

• A)The higher the labor cost-total cost ratio, the lower the elasticity of demand for labor.
• B)The lower the labor cost-total cost ratio, the higher the elasticity of demand for labor.
• C)The more substitutes for labor, the higher the elasticity of demand for labor.
• D)The fewer substitutes for labor, the higher the elasticity of demand for labor.
• E)b and c

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Definitions:

Contingent Consideration

An obligation to transfer additional assets or equity interests if certain predefined conditions are met post-acquisition.

Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership value held by shareholders.

Fair Value

The figure that represents either the income from an asset sale or the expense for settling a liability during a coordinated trade between market participants on the agreed upon date of appraisal.

Fair Value

An estimation of the price at which an asset or liability would be willingly exchanged between market participants at an arm's length transaction.