Equilibrium market prices for capital and labor are $10 and $8,respectively.Then,the economy experiences one or more supply shocks,so that the marginal product of capital is $9,and the marginal product of labor is $6.Assuming that the available quantities of capital and labor are fixed,which of the following is (are)likely to decrease as the economy approaches its new equilibrium?
A)economic profits
B)real rental price of capital
C)total output
D)the quantity of capital in use
E)none of the above

Question

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The Answer of Equilibrium market prices for capital and labor are $10 and $8,respectively.Then,the economy experiences one or more supply shocks,so that the marginal product of capital is $9,and the marginal product of labor is $6.Assuming that the available quantities of capital and labor are fixed,which of the following is (are)likely to decrease as the economy approaches its new equilibrium?
A)economic profits
B)real rental price of capital
C)total output
D)the quantity of capital in use
E)none of the above

Equilibrium Market Prices for Capital and Labor Are $10 and $8,respectively.Then,the