Refer to the following:
The price of capital is $500 per unit.
-Which of the following combinations of capital and labor lies on the expansion path?
A) 500L, 100K
B) 800L, 160K
C) 1100L, 220K
D) both a and b
E) none of the above

Question

Refer to the following:
  The price of capital is $500 per unit.
-Which of the following combinations of capital and labor lies on the expansion path?
A) 500L, 100K 
B) 800L, 160K 
C) 1100L, 220K 
D) both a and b 
E) none of the above

Quizplus · Accepted Answer

The Answer of Refer to the following:
  The price of capital is $500 per unit.
-Which of the following combinations of capital and labor lies on the expansion path?
A) 500L, 100K 
B) 800L, 160K 
C) 1100L, 220K 
D) both a and b 
E) none of the above

Refer to the Following