The Demand for Capital Is Similar to the Demand for Labour

question 40

Multiple Choice

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

• A)the marginal product of labour is derived from the marginal product of capital.
• B)the marginal revenue product curve for labour 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:

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Equivalent Units

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Instruments designed to measure the concentration of dust particles in the air.

First-In, First-Out Method

An inventory valuation method that assumes the first items purchased or produced are the first ones sold, affecting the cost of goods sold and ending inventory value.