A Firm Holds Excess Labor If It Can Reduce the Amount

question 41

True/False

A firm holds excess labor if it can reduce the amount of labor it employs and still produce the same amount of output.

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Definitions:

Elastic

Describes a situation where the quantity demanded or supplied of a good is sensitive to changes in its price.

Current Margin

The existing difference between a company's sales and its variable costs, indicating the portion of sales revenue that covers fixed costs and profits.

Desired Margin

The target profit margin a company aims for in pricing its products or services.

Production Level

the quantity of goods and services produced by a business or economy within a certain period.