Given a 10 Percent Increase in Wages, Firm a Cuts

Multiple Choice

Given a 10 percent increase in wages, firm A cuts back on labor more than firm B. It follows that, ceteris paribus,

A) firm A likely has a higher labor cost-total cost ratio than firm B.
B) firm B likely has a higher labor cost-total cost ratio than firm A.
C) the elasticity of demand for labor is likely higher for firm B than firm A.
D) firm B likely has higher fixed costs than firm A.
E) firm A likely has higher per-unit costs than firm B.