If There Is a Monopoly in the Capital Market,whereas the Labor

question 8

Multiple Choice

If there is a monopoly in the capital market,whereas the labor market is competitive then:

• A)the rental rate of capital will be greater than the wage rate.
• B)the labor market will be in equilibrium,but there will be excess supply in the capital market.
• C)the marginal rate of technical substitution must be greater than the input price ratio.
• D)the capital market will be in equilibrium,but there will be excess demand in the labor market.

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