The Demand for Capital Is Similar to the Demand for Labor

question 232

Multiple Choice

The demand for capital is similar to the demand for labor in that

• A)the marginal product of labor is derived from the marginal product of capital.
• B)the marginal revenue product curve for labor is the same as the marginal revenue product curve for capital.
• C)both are derived demands.
• D)both are inelastic at high prices and elastic at low prices.

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Definitions:

Classify

To arrange or organize by classes; to designate as belonging to a particular category or group.

Automatic Thinking

Quick, reflexive thoughts that occur without conscious effort, often based on schemas or past experiences.

Deliberate Thinking

The process of consciously and intentionally focusing on specific thoughts or problems, often associated with careful decision-making and problem-solving.

Efficiency

The ability to accomplish a task or produce a desired outcome with the least amount of waste, expense, or unnecessary effort.