Multiple Choice
Which of the following statements is correct?
A) The market for capital is unlike the market for labor because the rental price of capital is unaffected by the marginal product of capital, whereas the price of labor is affected by the marginal product of labor.
B) The market for capital is unlike the market for labor because the purchase price of capital is unaffected by the marginal product of capital, whereas the price of labor is affected by the marginal product of labor.
C) The market for capital is like the market for labor because the rental price of capital is affected by the marginal product of capital, and the price of labor is affected by the marginal product of labor.
D) Neither the market for capital nor the market for labor is affected by the marginal product of capital or the marginal product of labor.
Correct Answer:
Verified
Correct Answer:
Verified
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