Economics 9708 · AS & A Level · Long-run costs and economies of scale

Long-run costs and economies of scale — practice question

What factor would be most likely to make the demand for labour in an industry inelastic?

  • ALabour costs are a small percentage of total cost.
  • BThe demand for the final product has a price elasticity of demand that is greater than one.
  • CThe workforce belongs to a strong trade union.
  • DThere is a large pool of readily available labour.

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