Other Things Equal, the Relationship Between the Relative Importance of a Given

question 351

Multiple Choice

Other things equal, the relationship between the relative importance of a given type of labor in a firm's total costs and the elasticity of demand for that labor is such that the

• A)demand for labor will be elastic only if labor accounts for less than 50 percent of total costs.
• B)demand for labor will be elastic only if labor accounts for 50 percent or more of total costs.
• C)larger the labor cost to total cost ratio, the smaller will be the elasticity of labor demand.
• D)larger the labor cost to total cost ratio, the greater will be the elasticity of labor demand.

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Definitions:

Conditional Offer

An offer that is subject to certain conditions being met before it becomes legally binding.

Americans with Disabilities Act

A civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places that are open to the general public.

Artificially High

Artificially high describes a situation where prices or values are inflated beyond their natural market level due to external factors, such as manipulation or scarce supply.

Collusion

A secret or illegal cooperation or conspiracy, especially between parties supposed to compete against each other.