Multiple Choice
Two inputs,labor and capital,are considered substitutes if:
A) a fall in the price of labor leads to no change in the price of capital
B) the marginal rate of technical substitution of labor for capital is less than one.
C) a fall in the price of labor leads to an increase in the price of capital
D) increasing the quantity of labor decreases the marginal product of capital
Correct Answer:

Verified
Correct Answer:
Verified
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