Assume That Capital and Labor Are Substitutes in Production

question 114

True/False

Assume that capital and labor are substitutes in production.The output effect of an increase in the price of capital decreases the demand for labor.

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Definitions:

Agent

A person appointed to act for another, usually in contract matters.

Agency by Estoppel

A form of agency created when a principal's actions lead a third party to believe that an agent has authority, obliging the principal to honor the agent's commitments.

Statute of Frauds

A legal principle that requires certain types of contracts to be written and signed.

Emergency

A sudden, urgent, usually unexpected occurrence or condition requiring immediate action or response.