According to the text there appear to be very limited opportunities for input substitution in the production of pipe organs.Which of the following is the most plausible explanation for this observation?
A)Capital costs have made it too expensive to purchase more capital stock.
B)It requires a large amount of highly trained labor to produce a single pipe organ.
C)The marginal productivity of additional trained workers is zero.
D)The capital used in producing pipe organs is much more expensive than the labor inputs.

Question

Quizplus · Accepted Answer

The text mentions that producing a pipe organ requires a large amount of highly trained labor, indicating that there is limited availability of skilled workers to substitute for other inputs. Therefore, option B is the most plausible explanation. The other options (A, C, and D) do not take into account the labor-intensive nature of pipe organ production, and therefore are less likely to explain the limited opportunities for input substitution.

According to the Text There Appear to Be Very Limited