Which of the following statements correctly identifies a difference between labor and capital?
A) Capital can be rented or owned by a firm, but labor cannot be owned.
B) Labor can be rented or owned by a firm, but capital cannot be owned.
C) Labor is hired until the marginal product of labor equals the price of labor, whereas capital is hired until the average product of capital equals the price of capital.
D) Labor is hired until the average product of labor equals the price of labor, whereas capital is hired until the marginal product of capital equals the price of capital.
Correct Answer:
Verified
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