A firm manager predicts and reacts to the moves of the firm’s competitors within the industry. What concept is illustrated by this example?

The size of the labor force in a country is equal to the:

A) number of unemployed workers in the country. B) number of employed workers plus the number of unemployed workers in the country. C) number of employed workers in the country. D) number of employed workers minus the number of unemployed workers in the country.

The price elasticity of demand for labor will be smaller, the

A) smaller is the price elasticity of demand for the final product. B) easier it is to employ substitute inputs in production. C) larger is the proportion of wage costs in the total cost of production. D) longer is the time period under examination.