What would make the demand for labor more elastic?
What will be an ideal response?
The demand for labor will be more elastic the greater the demand for the final product, the easier it is for labor to be substituted for by other inputs, the larger the proportion of total costs accounted for by labor, and the longer the time period.
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Which of the following is not a resource for a society?
a. cash b. entrepreneurship c. land d. labor
An externality is defined as
a. an opportunity cost that is not considered, which causes inefficiency. b. a social cost that affects parties external to a transaction. c. a transaction which imposes a loss on one of the parties involved. d. a "cost of doing business" that cannot be allocated to any particular good. e. the increase in cost associated with increased production.