It is profitable for a Jack's Jingles to use more equipment in the production of its songs when the:
A) rental price of land decreases.
B) rental price of capital increases.
C) wages of workers falls.
D) rental price of capital decreases.
E) marginal product of labor falls.

Question

Quizplus · Accepted Answer

When the rental price of capital decreases, it becomes cheaper for a business like Jack's Jingles to use more equipment in its production process. This could mean investing in additional studio equipment or software to improve their production capabilities. This would ultimately lead to increased efficiency and productivity, which could result in greater profits for the business.

It Is Profitable for a Jack's Jingles to Use More