When All Inputs Are Variable,a Competitive Firm's Labor Demand Curve

question 48

Multiple Choice

When all inputs are variable,a competitive firm's labor demand curve is:

• A)more inelastic than the short-run input demand curve.
• B)a vertical line with a zero slope.
• C)derived keeping the prices of other inputs constant.
• D)the same as the marginal value product curve.

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Definitions:

Incremental Pre-tax Profits

Profits generated from a specific event or decision, calculated before taxes are deducted.

DSO

Days Sales Outstanding, a measure of the average number of days that it takes a company to collect payment after a sale has been made.

Bad Debt

A receivable that is considered irrecoverable and is therefore written off as a loss.

Incremental Cost

The additional cost associated with producing one additional unit of output.