Why Is the Short-Run Labor Demand Curve Less Elastic Relative

question 23

Multiple Choice

Why is the short-run labor demand curve less elastic relative to the long-run labor demand curve?

• A)Because firms care about changes in wages in the short-run but not in the long-run.
• B)Because firms are better able to substitute capital for labor in the long run compared to the short run.
• C)Because labor is a normal good.
• D)Because a perfectly competitive firm can always pay lower wages in the long run.
• E)Because isocost curves get shallower when the wage increases.

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Definitions:

Tanner's Model

A scale of physical development in children, adolescents, and adults which defines physical measurements of development based on external primary and secondary sex characteristics.

Clinical Judgment

The application of information based on observation and experience to make patient care decisions.

Medication Error

A preventable event that may cause or lead to inappropriate medication use or patient harm while the medication is in the control of the health care professional, patient, or consumer.

Critical Thinking Skills

The ability to think clearly and rationally, understanding the logical connection between ideas, and critically evaluating arguments and evidence.