(Figure: Capital and Labor XI) Which of the following statements is (are) TRUE? I. If labor is cheaper than capital, the firm will produce at point B.
II) If capital is more expensive than labor, the firm will produce at point A.
III) At point A, the MRTS_LK = W/R.

Question

(Figure: Capital and Labor XI) Which of the following statements is (are) TRUE?

I. If labor is cheaper than capital, the firm will produce at point B.
II) If capital is more expensive than labor, the firm will produce at point A.
III) At point A, the MRTS_LK = W/R.

Quizplus · Accepted Answer

The Answer of (Figure: Capital and Labor XI) Which of the following statements is (are) TRUE? I. If labor is cheaper than capital, the firm will produce at point B. II) If capital is more expensive than labor, the firm will produce at point A. III) At point A, the MRTS_LK = W/R. A) II and III B) III C) I and III D) I and II

(Figure: Capital and Labor XI) Which of the Following Statements