In the Graph Below,the Price of Capital Is $500 Per

question 79

Multiple Choice

In the graph below,the price of capital is $500 per unit.At point A,the firm can exchange

• A)1 unit of capital for 5 units of labor and keep output unchanged.
• B)5 units of capital for 1 unit of labor and keep output unchanged.
• C)5 units of capital for 1 unit of labor and keep cost unchanged.
• D)both b and c
• E)none of the above

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Definitions:

Owner

An Owner is the individual or entity that legally holds the rights to possess, use, and dispose of property, assets, or a business.