The more substitutable capital and labor are in production, the more likely it is that the cross-price demand curve for capital (relative to the wage) is upward sloping.
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Q1: When output price rises, the long run
Q3: The cross-price demand for capital (relative to
Q4: Long run average cost curves are downward
Q5: (Long run) average cost curves are U-shaped
Q6: Short run average expenditure curves are tangent
Q7: If the cross-price demand curve for capital
Q8: The fixed expense on a fixed level
Q9: If the rental rate increases, we know
Q10: The greater the degree of substitutability between
Q11: If the rental rate increases, we know
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