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If labor is 20 percent of total costs in industry A and 70 percent in industry B, then other things equal, we would expect the
If labor is 20 percent of total costs in industry A and 70 percent in industry B, then other things equal, we would expect the elasticity of demand for labor to be greater in industry A than in industry B. greater in industry B than in industry A. the same in both industries. uncertain since no general relationship exists between cost shares and elasticities
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