Elasticity of labor demand .

Essay II (also in connection with contributions to the determination of wages in goods industry and services).

It seems acceptable to consider that the elasticity of labor demand measures the intensity of the reaction of the employer in terms of employment, the variations in salary.

Hence, it is considered that the elasticity of labor demand (by the employer) tends to be lower, the more reduced the proportion of the costs in hand labor in the total costs.

Where to place the bar of acceptable breakeven?

I would say - not in theory of perfect numbers, but i the desire of the employer - up to the employer to obtain the breakeven zero cost.

Situation where the salary is dispensable and the employee as well.

So if this ratio is <= 0, there will be no labor costs and no wages. It will be thus explained the reason for some business owners seeking the lowest possible wage and motivation of those who defend low wages.

Ceasing to exist salary contribution margin costs by abolishing this cost item, it will be maximized profitability and profit.