Given an 8 Percent Increase in Wages,firm a Cuts Back

Multiple Choice

Given an 8 percent increase in wages,firm A cuts back on labor more than firm B.It follows that,ceteris paribus,

A) there are fewer substitutes for labor in firm B than A.
B) there are fewer substitutes for labor in firm A than B.
C) sunk costs are greater for firm A than B.
D) the demand for the product that firm A produces is less elastic than the product that firm B produces.
E) a and d