Answered step by step
Verified Expert Solution
Question
1 Approved Answer
If the amount of capital employed increased while the amount of labor and other inputs stayed approximately fixed, and if the capital-output ratio remained constant,
If the amount of capital employed increased while the amount of labor and other inputs stayed approximately fixed, and if the capital-output ratio remained constant, then:
a.the capital-labor ratio must have fallen.
b.the price of capital must have fallen.
c.the law of diminishing returns must have been in operation.
d.technological improvements must have been made.
e. total output must have fallen
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started