Assume coffee machine and labor are the only two inputs for a coffee shop. The labor demand elasticity will be larger if A. Coffee machine is the substitute for labor in the shop. in the short run. B. Coffee has a relative inelastic demand C. Labor cost is around 80% in the total cost of the shop. D. The supply of tea machine is quite elastic.
Assume coffee machine and labor are the only two inputs for a coffee shop. The labor demand elasticity will be larger if A. Coffee machine is the substitute for labor in the shop. in the short run. B. Coffee has a relative inelastic demand C. Labor cost is around 80% in the total cost of the shop. D. The supply of tea machine is quite elastic.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 10SQP
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