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.

Make appropriate journal entries for the purchase, requisition, and application of raw materials.

Comprehend the allocation of underapplied or overapplied manufacturing overhead to work in process, finished goods, and cost of goods sold.

Calculate actual manufacturing overhead costs.

Identify the correct treatment of direct and indirect materials in production.