The Long-Run Industry Demand for Labor Is Likely to Be

question 63

Multiple Choice

The long-run industry demand for labor is likely to be the most elastic when:

• A)wages form a significant portion of total costs.
• B)firms in the industry face L-shaped isoquants.
• C)the supply of other inputs is elastic.
• D)the product demand curve is inelastic.

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Definitions:

Remote Associates Test

A creativity test that measures the ability to see relationships between seemingly unrelated words and to generate a word that is linked to all three.

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions, emphasizing spontaneity and non-linear approaches.

Heuristic

A rule of thumb that is derived from experience and used in decision making and problem solving, even though there is no guarantee of its accuracy or usefulness.

Insightful

Having or showing an accurate and deep understanding; perceptive.