Why Is the Short-Run Labor Demand Curve Less Elastic Relative

Why is the short-run labor demand curve less elastic relative to the long-run labor demand curve?

A) Because firms care about changes in wages in the short-run but not in the long-run.
B) Because firms are better able to substitute capital for labor in the long run compared to the short run.
C) Because labor is a normal good.
D) Because a perfectly competitive firm can always pay lower wages in the long run.
E) Because isocost curves get shallower when the wage increases.

Correct Answer:

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