Which of the Following Statements Is Correct

question 482

Multiple Choice

Which of the following statements is correct?

• A)The market for capital is unlike the market for labor because the rental price of capital is unaffected by the marginal product of capital, whereas the price of labor is affected by the marginal product of labor.
• B)The market for capital is unlike the market for labor because the purchase price of capital is unaffected by the marginal product of capital, whereas the price of labor is affected by the marginal product of labor.
• C)The market for capital is like the market for labor because the rental price of capital is affected by the marginal product of capital, and the price of labor is affected by the marginal product of labor.
• D)Both a and b are correct.

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Definitions:

Contractual Capacity

The lawful capacity of an individual to engage in a contract that is enforceable.

Disaffirmed

The legal act of declaring a contract or agreement void and nullifying its effects, often in the context of contracts entered into by minors.

Third Parties

Entities or individuals not directly involved in a contract or agreement but who may be affected by its execution or have specific rights or claims related to it.

Wrongfully Discharged

Termination of an employee in violation of legal rights or the terms of an employment contract.