Labor demand more elastic in the long-run or the short-run

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Laura (of Luke and Laura’s Itty-Bitty Drink Umbrella Inc.) is trying to decide how many workers to hire. The Itty-Bitty Drink Umbrella production function is given by: Q = 6L^(1/3)K^(1/2). The price of output is p, the wage rate is w, and the rental rate for capital is r.

Is labor demand more elastic in the long-run or the short-run, and WHY? Show the math and explain why your answer in words.

Reference no: EM13798045

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Labor demand more elastic in the long-run or the short-run : Laura (of Luke and Laura’s Itty-Bitty Drink Umbrella Inc.) is trying to decide how many workers to hire. The Itty-Bitty Drink Umbrella production function is given by: Q = 6L^(1/3)K^(1/2). The price of output is p, the wage rate is w, and the rental ..

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