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

Long-run costs and economies of scale — practice question

Under which circumstance is the demand for labour likely to be inelastic?

  • ALabour and capital are close substitutes.
  • BLabour costs are only a small proportion of total costs.
  • CDemand for the final product that the labour produces is elastic.
  • DA large quantity of unemployed labour is available in the economy.

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