In the Long-Run,capital Will Be Allocated Across Industries Such That

question 86

Multiple Choice

In the long-run,capital will be allocated across industries such that:

• A)the rate of return to capital is highest in the most profitable industries.
• B)the rate of return to capital is equal across industries.
• C)the ratio of capital to labor is equal across industries.
• D)economic rents are equalized across industries.

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Definitions:

Probability

A measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Descriptive Statistics

Statistical procedures used to summarize, organize, and simplify data, including measures of central tendency and variability.

Inferential Statistics

Statistical methods that allow researchers to make inferences or predictions about a population based on a sample of data.

Measures of Variation

Statistical tools used to describe the distribution or spread of a data set, including range, variance, and standard deviation.