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Question
Suppose there are four industries. Labor costs are 80 percent of total costs in industry A, 60 percent in B, 45 percent in C, and 10 percent in D. In which of these industries will a 10 percent increase in the price of labor reduce quantity demanded of labor by the largest proportion?
A) A
B) B
C) C
D) D
Answer
This answer is hidden. It contains 1 characters.
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