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

Question 36

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? A) It is easier for a small amount of additional labor to replace a large amount of capital at point A than at point B. B) It is easier for a small amount of additional labor to replace a large amount of capital at point B than at point A. C) The MRTS<sub>LK</sub> at point A equals MP<sub>K</sub>/MP<sub>L</sub>. D) The MRTS<sub>LK</sub> at point B is greater than MRTS<sub>LK</sub> at point A.


A) It is easier for a small amount of additional labor to replace a large amount of capital at point A than at point B.
B) It is easier for a small amount of additional labor to replace a large amount of capital at point B than at point A.
C) The MRTSLK at point A equals MPK/MPL.
D) The MRTSLK at point B is greater than MRTSLK at point A.

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