单选题
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. Correct Correct
②B. Correct Incorrect
③C. Incorrect Correct
A. ①B. ②C. ③
【正确答案】
C
【答案解析】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.