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In the Graph Below,the Price of Capital Is $500 Per

Question 53

Multiple Choice

In the graph below,the price of capital is $500 per unit.At point A,the firm can exchange In the graph below,the price of capital is $500 per unit.At point A,the firm can exchange A) 1 unit of capital for 5 units of labor and keep output unchanged. B) 5 units of capital for 1 unit of labor and keep output unchanged. C) 5 units of capital for 1 unit of labor and keep cost unchanged. D) both b and c E) none of the above


A) 1 unit of capital for 5 units of labor and keep output unchanged.
B) 5 units of capital for 1 unit of labor and keep output unchanged.
C) 5 units of capital for 1 unit of labor and keep cost unchanged.
D) both b and c
E) none of the above

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