Which of the following will occur when the capital stock increases?
A)profit per unit of capital will increase
B)profit per unit of capital will decrease
C)there will be no change in profit per unit of capital
D)there will be an ambiguous effect on profit per unit of capital
E) none of the above

Question

Quizplus · Accepted Answer

When the capital stock increases, it typically leads to an increase in supply of goods or services, which can drive down the price or profit per unit of capital due to increased competition or lower marginal productivity of capital.

Which of the Following Will Occur When the Capital Stock