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

question 55

Multiple Choice

(Figure: Capital and Labor IV) Which of the following statements is (are) TRUE? I. More output is produced at point A than at point B.
II) The ratio of the marginal product of labor to the marginal product of capital is higher at point A than at point B.
III) The MRTS_LK is equal at points A and B.

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

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Definitions:

Categorical

Pertaining to data that can be divided into specific groups or categories that are mutually exclusive.

Data

Collected information or facts, typically numerical, that are used as a basis for reasoning, discussion, or calculation.

Categorical Variable

A type of variable that can take on one of a limited, and usually fixed, number of possible values, assigning each individual or other unit of observation to a particular group or nominal category.

Social Security Number

A unique nine-digit number assigned to U.S. citizens, permanent residents, and temporary working residents that is used for tracking individuals for social security and taxation purposes.