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(Table: Capital and Labor II) Which of the Following Statements

Question 70

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(Table: Capital and Labor II) Which of the following statements is (are) TRUE? (Table: Capital and Labor II)  Which of the following statements is (are)  TRUE?   I. A combination of 4 units of capital and 2 units of labor produces the same amount of output as a combination of 3 units of capital and 3 units of labor. II)  If labor is fixed at 3 units, adding more capital increases output at an increasing rate. III)  If capital is fixed at 2 units, adding more labor results in diminishing returns. IV)  A combination of 3 units of capital and 4 units of labor produces 171.4 units of output. A)  I, II, III, and IV B)  II, III, and IV C)  III and IV D)  IV I. A combination of 4 units of capital and 2 units of labor produces the same amount of output as a combination of 3 units of capital and 3 units of labor.
II) If labor is fixed at 3 units, adding more capital increases output at an increasing rate.
III) If capital is fixed at 2 units, adding more labor results in diminishing returns.
IV) A combination of 3 units of capital and 4 units of labor produces 171.4 units of output.


A) I, II, III, and IV
B) II, III, and IV
C) III and IV
D) IV

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