Choose the correct statement. ... OA. The demand for capital is perfectly inelastic. OB. The supply of capital is perfectly inelastic. OC. The supply of capital is based on the value of marginal product of capital. O D. The demand for capital is based on the value of marginal product of capital.

Choose the correct statement. ... OA. The demand for capital is perfectly inelastic. OB. The supply of capital is perfectly inelastic. OC. The supply of capital is based on the value of marginal product of capital. O D. The demand for capital is based on the value of marginal product of capital.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Choose the correct statement.
OA. The demand for capital is perfectly inelastic.
OB. The supply of capital is perfectly inelastic.
OC. The supply of capital is based on the value of marginal product of capital.
OD. The demand for capital is based on the value of marginal product of capital.
M

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Output per worker ($ thousands) 0 Select one or more: 0 Capital equipment per worker ($ thousands) Which TWO of the following statements are correct? O a. The slope of the function is the marginal product of capital. b. The figure shows that each extra $ of capital per worker raises output per worker by an equal amount. ✔ C. The function is "convex" (L.e. it has a slope which increases as capital per worker rises). Od. The figure shows that higher capital per worker increases output per worker. Production function
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2. Capital A F E G B D Labor If the firm wants to produce the output level represented by the isoquant Qo, would you recommend production at point E or F or G? Please explain.