The market supply curve of capital is: a

Economics Dec 08, 2020

The market supply curve of capital is:

a. Upward sloping,

b. Perfectly inelastic,

c. U-shaped,

d. Downward sloping,

e. Perfectly elastic.

Expert Solution

The correct option is a) Upward sloping.

Explanation;

The supply curve is a slanting upwards indicating the favorable association among the provided quantity and price. The business would use capital to increase income to the extent that the amount of the marginal output of capital is equivalent to the rent.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote