Which of the Following Statements Correctly Identifies a Difference Between

question 75

Multiple Choice

Which of the following statements correctly identifies a difference between labor and land?

• A) Land can be rented but not owned by a firm, whereas labor can be rented or owned.
• B) Labor can be rented but not owned, whereas land can be rented or owned by a firm.
• C) Labor is hired until the marginal product of labor equals the price of labor, whereas land is rented until the average product of land equals the price of land.
• D) Labor is hired until the average product of labor equals the price of labor, whereas land is rented until the marginal product of land equals the price of land.