Which of the Following Statements Is True

question 115

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.

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Definitions:

Operations Managers

Individuals responsible for overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods or services.

Adding Capacity

The process of increasing the ability of a system or process to produce output, either by adding resources or optimizing current ones.

Robust Design

A design that can be produced to requirements even with unfavorable conditions in the production process.

Production

The process of creating, manufacturing, or producing goods and services.