Refer to the information provided in Table 31.2 below to answer the question(s) that follow.Table 31.2PeriodQuantity of Labor (L)Quantity of Capital (K)Total Output (Y)1 50 50 2002 50 60 2153 50 70 2254 50 80 230Refer to Table 31.2. When moving from Period 1 to Period 4, the marginal return to capital
A. increases.
B. decreases.
C. does not change.
D. first increases, then decreases.
Answer: B
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The tendency for individuals to assign higher values to goods when they own the goods than when they do not possess the goods is known as the:
A) substitution effect. B) endowment effect. C) income effect. D) anchoring effect.
A higher exchange rate value of the dollar reduces inflation but has a contractionary effect on the economy.
Answer the following statement true (T) or false (F)
Covered interest parity is rarely found to hold empirically.
Answer the following statement true (T) or false (F)
In San Francisco there are many retail clothing stores. Each store is slightly different from every other store. Retail clothing stores are an example of what market structure?
A. monopoly B. perfect competition C. monopolistic competition D. oligopoly