The Figures Below Give the Production Schedule and the Product

question 8

Multiple Choice

The figures below give the production schedule and the product demand schedule for a firm, which has to decide how many workers to hire. $\begin{array}{c}\begin{array}{lll}\\\text {Workers}\\\text {hired}\\0\\1\\2\\3\\4\\5\\6\end{array}\begin{array}{lll}\text {Total}\\\text {Physical}\\\text {Product}\\0\\10\\18\\25\\30\\34\\37\end{array}\begin{array}{lll}\text {Price of}\\\text {output}\\\$10\\\$10\\\$10\\\$10\\\$10\\\$10\\\$10\\\end{array}\end{array}$
-Which of the following is correct regarding the elasticity of labour demand?

• A) If the share of the labour costs in total costs is large, the derived demand for labour will be inelastic.
• B) If the product demand is elastic, the derived demand for labour will be inelastic.
• C) If the supply of substitute inputs is inelastic, the derived demand for labour will be inelastic.
• D) If capital and labour are easily substitutable, the derived demand for labour will be inelastic.
• E) None of the choices are correct.

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Definitions:

Brand Revitalization

The strategy of reviving a declining brand through various means such as rebranding, innovation, or marketing to increase its market share and relevance.

Rebranding

The process of changing the corporate image of an organization, including its visual identity, messaging, and branding strategy, often aimed at repositioning the brand in the market or reaching new audiences.

Recouping

The act of recovering money spent or lost through subsequent earnings or savings.

Brand Extension

The strategy of using an existing brand name to launch a new or modified product in a different category, leveraging the brand's equity.