Suppose that labor is measured on the horizontal axis and capital is measured on the vertical axis. At an interior solution:
A. MRTSLK = PL/PK.
B. MRTSLK = - PL/PK.
C. MRSTLK = PK/PL.
D. MRTALK = - PK/PL.
A. MRTSLK = PL/PK.
You might also like to view...
A firm will tend to follow competitors when they increase spending on R&D, but will not follow them when they decrease such spending
a. True b. False Indicate whether the statement is true or false
The investment component of GDP refers to financial investment in stocks and bonds
a. True b. False Indicate whether the statement is true or false
Store clerks are known to have low wages. This is likely to reflect the fact that
a. store clerk jobs are perceived to be relatively easy, thus attracting low-skill workers. b. store clerk jobs are perceived to be relatively difficult, thus attracting high-skill workers. c. many people perceive the job of store clerk as having significant risk of death on the job. d. store clerks are required to have a college degree.
At a supermarket, the price of organic milk increases by 20 percent. According to the law of demand, the sale of organic milk would most likely ______.
a. decrease by 10 percent b. increase by 15 percent c. fluctuate between a 5 percent increase and a 5 percent decrease d. stay approximately the same