If It Is Costly for a Firm to Adjust Its

question 10

Multiple Choice

If it is costly for a firm to adjust its employment level rapidly,the firm faces

• A) a positive labor demand elasticity.
• B) linear adjustment costs.
• C) concave adjustment costs.
• D) convex adjustment costs.
• E) lumpy adjustment costs.

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Definitions:

Turnover

The rate at which inventory is sold and replaced or an employee leaves and is replaced in a company.

Operating Assets

Assets used for the operations of a business, such as equipment, inventory, and real estate.

Turnover

The total sales or revenue generated by a company within a specific period, indicating the pace at which a business operates.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of several investments.