Are the following two statements about the

问题单项选择题

Are the following two statements about the elasticity of labor demand correct Statement 1: Labor demand is more elastic in the short run than in the long run because other factors of production are fixed in the short run. Statement 2: The more labor-intensive a firm’s production processes, the more elastic the firm’s demand for labor will be. Statement 1 Statement 2 （）①A. CorrectCorrect ②B. CorrectIncorrect ③C. Incorrect Correct

A. ①

B. ②

C. ③

答案

参考答案：C

解析：

Statement 1 is incorrect. The fact that other factors of production are fixed makes labor demand less elastic in the short run. Statement 2 is correct. A firm will have more elastic labor demand when labor represents a larger proportion of its input costs.