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

Question 55

Multiple Choice

(Figure: Capital and Labor IV) Which of the following statements is (are) TRUE? (Figure: Capital and Labor IV)  Which of the following statements is (are)  TRUE?   I. More output is produced at point A than at point B. II)  The ratio of the marginal product of labor to the marginal product of capital is higher at point A than at point B. III)  The MRTS<sub>LK</sub> is equal at points A and B. A)  I, II, and III B)  II C)  III D)  II and III I. More output is produced at point A than at point B.
II) The ratio of the marginal product of labor to the marginal product of capital is higher at point A than at point B.
III) The MRTSLK is equal at points A and B.


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

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