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VARVARA [1.3K]
3 years ago
14

Factors that affect the elasticity of demand for labor include all of these except:

Business
1 answer:
Igoryamba3 years ago
5 0
Since the problem doesn’t give the choices for these questions. I will be giving you the factors that affect the elasticity:

1. Labor costs as percent of total costs – when labor expenses have a high share in total costs then labor demand is more elastic.

2. Easiness and cost of factor substitution – when the firm can substitute rapidly and effortlessly between labor and capital inputs.

3. Price elasticity of demand for the final output produced – if the business is working an extremely competitive market where the final demand of the product is elastic and as a result the demand for labor is more elastic.
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