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

question 51

Multiple Choice

(Figure: Capital and Labor XI) Which of the following statements is (are) TRUE? I. If labor is cheaper than capital, the firm will produce at point B.
II) If capital is more expensive than labor, the firm will produce at point A.
III) At point A, the MRTS_LK = W/R.

• A) II and III
• B) III
• C) I and III
• D) I and II

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Definitions:

Charter Business

A company that operates under a charter, offering specified services or engaging in a particular type of business, often subject to special regulations or privileges.

Secured Loan

A loan backed by collateral, providing the lender a right to claim the asset if the borrower defaults on the loan.

Priority

The order in which rights, obligations, or claims are ranked or considered, often in a legal context.

Default

Failure to fulfill a duty or obligation, typically in the context of financial agreements such as failing to make loan payments.