Author Question: If capital increases by two units, and MRTS is 1, then what is the MPL? A) 2 B) 1/2 C) 1 D) ... (Read 40 times)

j.rubin · **on:** Jul 1, 2018

If capital increases by two units, and MRTS is 1, then what is the MPL?

A) 2
B) 1/2
C) 1
D) Not enough information given.

Question 2

Measuring y on the vertical axis and x on the horizontal axis, convexity of indifference curves imply that the magnitude of MRS of y for x

A) is decreasing as x increases.
B) is increasing as x increases.
C) is constant as x increases.
D) cannot be calculated for large levels of x.