Which of the Following Will Occur When the Capital Stock

Multiple Choice

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

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 decreases followed by increases.
E) There will be an ambiguous effect on profit per unit of capital.