A Technological Change That Raises the Value of Marginal Product

question 351

Multiple Choice

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

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

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Definitions:

Make-Or-Buy Policy

A decision-making process used by companies to determine whether to produce goods internally or purchase them from an external supplier.

Manufacturing And Operations

The processes involved in producing goods and managing their production in factories or plants.

Finished Product

The final output of a manufacturing process, ready for sale or distribution to the end-user.

Gross Margin

A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage, indicating the financial health and profitability of a product or service.