Identify the Correct Statement from the Following

question 33

Multiple Choice

Identify the correct statement from the following.

• A)Wages offered for a particular type of job are the same across the country.
• B)The labor market exhibits rapid adjustment to changes in supply or demand conditions.
• C)The labor market usually yields a range of wages rather than a unique equilibrium.
• D)Wages exhibit frequent and prompt changes in response to changes in market conditions.

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Definitions:

Contribution Approach

A managerial accounting method that separates fixed costs from variable costs to determine the contribution margin per unit and overall contribution towards fixed costs and profits.

Differential Cost

The difference in total cost that will result from selecting one alternative over another.

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount available to cover fixed costs and generate profit.

Variable Administrative Expenses

Expenses within the administration sector that fluctuate with the level of business activity, like sales commissions.