Which of the Following Statements Is True of the Industry

question 87

Multiple Choice

Which of the following statements is true of the industry demand for labor?

• A)The lesser the elasticity of the final product,the higher the elasticity of the industry labor demand curve.
• B)The longer the time period allowed for adjustment,the lesser the elasticity of the industry labor demand curve.
• C)The lower the substitutability of inputs,the higher the elasticity of the industry labor demand curve.
• D)The lower the supply elasticity of other inputs,the lesser the elasticity of the industry labor demand curve.

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Definitions:

Double-Declining-Balance

An accelerated depreciation method that calculates depreciation at twice the rate of the straight-line method.

Depreciation

The systematic allocation of an asset's cost over its useful life, reflecting its decrease in value over time.

Periodic Depreciation Charge

A non-cash expense that allocates the cost of a tangible asset over its useful life on a regular basis.

Acquisition Fees

Fees associated with the process of acquiring another company, such as legal, consulting, and accounting fees.