A Technological Change That Raises the Value of Marginal Product

question 128

Multiple Choice

A technological change that raises the value of marginal product of capital _______ the rental rate of capital because the _______.

• A) lowers; supply curve of capital shifts rightward
• B) lowers; demand curve for capital shifts leftward
• C) raises; supply curve of capital shifts leftward
• D) raises; demand curve for capital shifts rightward

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Definitions:

Weight Gain

An increase in body weight, which can be due to muscle mass increase, fat accumulation, or other factors.

Probability Distribution

A mathematical description of the likelihood of different outcomes in an experiment, showing how probabilities are distributed over a range of values.

Variance

A statistical measure that represents the average squared deviation from the mean, indicating how spread out a data set is.

Law of Total Probability

A fundamental rule that provides a way to break down the probabilities of complex events into more manageable pieces.