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Is a firm's demand for labor curve is more elastic in the short run than in the long run?
Wiki User
∙ 11y ago
No. It's more elastic in the long run than the short run.
Wiki User
∙ 11y ago
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The labor demand curve of a purely competitive seller perfectly elastic?
yes the demand curve is perfectly inelastic and horizontal
Why is demand for labor curve downward sloping?
I believe in economics we assume that firms are rational and because of this a rational firm would not employ additional labor if it caused a decline in the total output of the firm.
What factor will cause the demand curve for labor to shift to the right?
It is something
Who benefits or loses from a low elasticity of demand for labor?
The low elasticity of demand for labor decreases with unemployment benefit. Generally low pay workers prefer that the minimum wage rate be increased until the labor demand is unitary elastic.
What steps does the firm need to take to reconcile labor supply and labor demand?
Labor supply, and demand is what determines the cost of Labor. Firms must consider their margin, pricing policy, improvement costs to raise productivity, market share, and competition, to arrive at a labor level reconciliation. Or The first step a firm needs to take to reconcile labor supply and labor demand is to analyze what problems need to be resolved. The goal is to have the labor supply, which is made up of the hours employees work, equal the labor demand, which is the work that needs to be done. Some firms hire outside consultants to do this for them.
The labor demand curve of a purely competitive seller perfectly elastic?
yes the demand curve is perfectly inelastic and horizontal
Why is demand for labor curve downward sloping?
I believe in economics we assume that firms are rational and because of this a rational firm would not employ additional labor if it caused a decline in the total output of the firm.
What factor will cause the demand curve for labor to shift to the right?
It is something
Who benefits or loses from a low elasticity of demand for labor?
The low elasticity of demand for labor decreases with unemployment benefit. Generally low pay workers prefer that the minimum wage rate be increased until the labor demand is unitary elastic.
What steps does the firm need to take to reconcile labor supply and labor demand?
Labor supply, and demand is what determines the cost of Labor. Firms must consider their margin, pricing policy, improvement costs to raise productivity, market share, and competition, to arrive at a labor level reconciliation. Or The first step a firm needs to take to reconcile labor supply and labor demand is to analyze what problems need to be resolved. The goal is to have the labor supply, which is made up of the hours employees work, equal the labor demand, which is the work that needs to be done. Some firms hire outside consultants to do this for them.
What best explains why the level of wages are largely determined by the law of supply and demand?
People looking for jobs constitute the supply of labor. Firms looking for employees constitute the demand for labor. Clearly then if there is a large supply of labor available and not much demand, wages will be low. If there is a large demand for labor and a small supply, wages will be high.
What is meant by the term substitution of capital for labor?
Changes in the price of capital have a similar effect on the demand for labour as a change in the price of any substitute good has on a demand curve. Thus if the cost of labour is relatively low, firms will reduce their use of capital (technology) resulting in greater use of labour in production.
What factors determine the demand for labor?
causes a movement along the MRP curve: -wage rate causes a shift of the MRP curve: -price of capital -changes in productivity -changes in the price of the firm's product -demand for the product
The labor demand curve is negatively sloped because?
this site has no sense I dont know why you call yourself answer.com
What are some affects to the market supply curve?
cost of labor a change in the demand for the product the number of sellers offering the product
Explain how labor market equilibrium is affected by the supply and demand of labor in a Monopolistic Competition?
The labor market will reach equilibrium as the amount of workers willing to work for a certain price equals the amount of workers employers are willing to hire for that wage. On a supply and demand curve the employees represent the suppl side while the employers represent the demand side
Derive the wage offer curve and supply curve of labor and determine the equilibrium wage under perfect competition in the labor market?
The question doesn't provide any curve, because that's impossible on Answers.com. However it's easy to determine the equilibrium wage in a perfectly competitive market by equating the market demand for labour with the market supply of labour.
