The Output Effect of a Change in the Wage Rate

question 33

Multiple Choice

The output effect of a change in the wage rate on a firm's demand for labor input will be greater

• A)the larger the share of labor costs in total costs and the greater the price elasticity of demand for output.
• B)the larger the share of labor costs in total costs and the smaller the price elasticity of demand for output.
• C)the larger the share of labor costs in total costs and the higher the quantity demanded.
• D)the smaller the possibilities of substituting capital for labor.

---

Definitions:

Personal Financial Information

Data related to an individual's finances, including income, debt, investments, and credit history.

Sole Stockholder

An individual or entity that is the only owner of all the shares of a company.

External Users

Individuals or entities outside of a company who are interested in its financial information, including investors, creditors, and regulatory agencies.

Accounting Information

Data related to the financial transactions and status of an individual or entity, often used for decision making.