Multiple Choice
Which would result in a decrease in the elasticity of demand for a particular resource?
A) a decrease in the rate at which the marginal product of that resource declines
B) an increase in the elasticity of demand for the product that the resource helps to produce
C) a decrease in the percentage of the firm's total costs accounted for by the resource
D) an increase in the substitutability of other resources for the particular resource
Correct Answer:

Verified
Correct Answer:
Verified
Q41: A firm will find it profitable to
Q42: If the price of capital declines, the
Q43: Suppose a firm hires both labor (L)
Q45: In the United States, professional football players
Q48: Which of the following occupations is among
Q49: Assuming pure competition, which of the
Q50: Suppose the productivity of labor increases and
Q51: The more inelastic the demand for a
Q150: Hiring the least-costly combination of resources ensures
Q201: The marginal productivity theory of income distribution