Labor Market Comparisons Are More Important Than Product Market Comparisons

question 83

Multiple Choice

Labor market comparisons are more important than product market comparisons when

• A)product demand is elastic.
• B)the costs of recruiting replacements are low.
• C)attracting and retaining qualified employees is difficult.
• D)the supply of labor is inelastic.
• E)employee skills are specific to the product market.

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Definitions:

Margin

Margin refers to the difference between the selling price of a good or service and its cost of production, usually expressed as a percentage of the selling price.

Return On Investment

A gauge of an investment's profit, expressed as the return percentage in comparison to the cost of the investment.

Residual Income

Residual income is the profit remaining after deducting all required costs of capital from operating income.

Margin

Typically refers to the difference between the selling price of a product and its cost, used to measure profitability.