Which of the Following Will Occur When the Capital Stock

Multiple Choice

Which of the following will occur when the capital stock increases?

A) There will be no change in profit per unit of capital.
B) Profit per unit of capital will decrease.
C) Profit per unit of capital will increase.
D) Profit per unit of capital initially increases followed by decreases.
E) There will be an ambiguous effect on profit per unit of capital.