In the Long Run, When Factors of Production Are Variable

question 314

True/False

In the long run, when factors of production are variable, demand for labor tends to be more elastic.

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Definitions:

Pareto Optimal

A state of allocation of resources from which it is impossible to make any one individual better off without making at least one individual worse off.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available to all members of a society, such as public parks and national defense.

Private Consumption

The total amount of goods and services consumed by individuals in a household.

Pareto Optimal

A situation where resources are distributed in such a way that improving one person's condition inevitably leads to the detriment of another individual.