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(Figure: Capital and Labor XI) Which of the Following Statements

Question 51

Multiple Choice

(Figure: Capital and Labor XI) Which of the following statements is (are) TRUE? (Figure: Capital and Labor XI) Which of the following statements is (are) TRUE? I. If labor is cheaper than capital, the firm will produce at point B. II) If capital is more expensive than labor, the firm will produce at point A. III) At point A, the MRTS<sub>LK</sub> = W/R. A) II and III B) III C) I and III D) I and II I. If labor is cheaper than capital, the firm will produce at point B.
II) If capital is more expensive than labor, the firm will produce at point A.
III) At point A, the MRTSLK = W/R.


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

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