Refer to the Following Graph

question 42

Multiple Choice

Refer to the following graph.The price of capital (r) is $20. Why wouldn't the firm choose to produce 5,000 units of output with the combination at B?

• A)At B,MRTS < 3/2.
• B)At B,MP_K / r > MP_L / w.
• C)At B,MP_L < MP_K.
• D)both a and b
• E)none of the above

---

Definitions:

Wilcoxon Rank Sum Test

A non-parametric statistical test used to compare two independent samples to assess if their population mean ranks differ.

Non-Normality

A situation where a data set does not follow a normal distribution, affecting the choice of statistical methods for analysis.

Rank Sum Statistic

A statistical measure used in non-parametric tests to evaluate the significance of the difference between two independent samples based on ranks of the data.

Sample Size

The number of subjects or observations included in a study or experiment, which can affect the validity and reliability of statistical analyses.