The elasticity of factor demand will be greater the: Select one: a) fewer the amount of capital used in the production process b) smaller the portion of the product's total costs accounted for by the factor c) less the elasticity of demand for the product it is producing d) larger the number of substitute factors which are available e) more rapid the rate of decline in its marginal product
The elasticity of factor demand will be greater the: Select one: a) fewer the amount of capital used in the production process b) smaller the portion of the product's total costs accounted for by the factor c) less the elasticity of demand for the product it is producing d) larger the number of substitute factors which are available e) more rapid the rate of decline in its marginal product
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The elasticity of factor
Select one:
a) fewer the amount of capital used in the production process
b) smaller the portion of the product's total costs accounted for by the factor
c) less the elasticity of demand for the product it is producing
d) larger the number of substitute factors which are available
e) more rapid the rate of decline in its marginal product
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