Multiple Choice
Refer to the following:
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
Correct Answer:

Verified
Correct Answer:
Verified
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