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An Elastic Supply Curve for Labour Means That a Small

question 17

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An elastic supply curve for labour means that a small increase in wages will significantly increase labour supply.


Definitions:

Product Outputs

The quantity of goods or services produced by a business or economy in a given period.

Marginal Product

The additional output produced as a result of using one more unit of a particular input, keeping other inputs constant.

Total Product

The total quantity of output produced by a firm from a given quantity of inputs during a specific period of time.

Fixed Cost

Any cost that in total does not change when the firm changes its output.

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