Other Things Equal,the Relationship Between the Relative Importance of a Given

question 119

Multiple Choice

Other things equal,the relationship between the relative importance of a given type of labor in a firm's total costs and the elasticity of demand for that labor is such that the:

• A) demand for labor will be elastic only if labor accounts for less than 50 percent of total costs.
• B) demand for labor will be elastic only if labor accounts for 50 percent or more of total costs.
• C) larger the labor cost-total cost ratio,the smaller will be the elasticity of labor demand.
• D) larger the labor cost-total cost ratio,the greater will be the elasticity of labor demand.

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Definitions:

Agriculture Sector

A segment of the economy focused on the production, processing, and distribution of food, fiber, and other related products.

Farm Output

The total quantity of agricultural products produced by a farm.

Parity Ratio

A term not defined in standard economic texts, potentially referring to comparative measures of commodities, incomes, or other economic indicators, effectively requiring further context for accurate explanation.

Farm Subsidies

Financial support and assistance provided by the government to farmers and agribusinesses to supplement their income and manage the supply of agricultural commodities.