Multiple Choice
Suppose the payments to capital and labor are (w*L*) /Y* = 2/3 and (r*L*) /Y* = 1/3,respectively.One implication of this result is:
A) (w*L*/r*K*) = Y*.
B) w*L* - r*K* = Y*.
C) w*L* r*K* = Y*.
D) w*L* + r*K* = Y*.
E) (w*L*/Y*) (r*K*/Y*) = 0.
Correct Answer:

Verified
Correct Answer:
Verified
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