In the graph below,the price of capital is $500 per unit.At point A,the firm can exchange
A)1 unit of capital for 5 units of labor and keep output unchanged.
B)5 units of capital for 1 unit of labor and keep output unchanged.
C)5 units of capital for 1 unit of labor and keep cost unchanged.
D)both b and c
E)none of the above

Question

In the graph below,the price of capital is $500 per unit.At point A,the firm can exchange 
A)1 unit of capital for 5 units of labor and keep output unchanged. 
B)5 units of capital for 1 unit of labor and keep output unchanged. 
C)5 units of capital for 1 unit of labor and keep cost unchanged. 
D)both b and c 
E)none of the above

Quizplus · Accepted Answer

The Answer of In the graph below,the price of capital is $500 per unit.At point A,the firm can exchange 
A)1 unit of capital for 5 units of labor and keep output unchanged. 
B)5 units of capital for 1 unit of labor and keep output unchanged. 
C)5 units of capital for 1 unit of labor and keep cost unchanged. 
D)both b and c 
E)none of the above

In the Graph Below,the Price of Capital Is $500 Per