Consider a Firm's Demand Curve for Labour

question 119

Multiple Choice

Consider a firm's demand curve for labour.If a technological change makes it harder to substitute capital for labour,the demand curve for labour

• A)shifts parallel to the right.
• B)shifts parallel to the left.
• C)becomes less elastic.
• D)becomes more elastic.
• E)is not affected.

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Definitions:

Capital Budgeting

The process by which a business determines and evaluates potential large expenses or investments.

Straight-Line Depreciation

A method for divvying the expense of a tangible asset through its operational duration in equivalent annual amounts.

Incremental Sales

The additional sales generated by a particular business activity or decision.

Operating Expenses

Expenses that are incurred during the normal operation of a business, excluding the cost of goods sold.