The Labour Demand Curve of a Business in a Perfectly

question 49

Multiple Choice

The labour demand curve of a business in a perfectly competitive labour market:

• A)slopes downward because the elasticity of demand is always less than unity
• B)slopes downward because of declining marginal product
• C)is perfectly elastic at the prevailing wage rate
• D)slopes downward because of diminishing marginal utility
• E)slopes upward because of the business's ability to set its resource price

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Definitions:

Lowest Level Of Quality

Refers to the minimum standard of quality that a product, service, or process must meet to be considered acceptable.

AOQ

Average Outgoing Quality, which is a measure in statistics and quality management used to average the number of defective units in a batch of goods.

Acceptance Sampling

A statistical quality control method that determines whether to accept or reject a batch of products based on sampling a few units from the batch.

Lower Specification Limit

The minimum acceptable limit for a characteristic or parameter of a product, below which the product is considered defective or unacceptable for use.