free Economics mulitple choice question... Please help...
manel7Please help I am stuck on this question:
Diminishing Returns to Capital and Real Wages. Consider this statement: Since capital of subject to diminishing returns, an increase in the supply of capital will reduce wages.
This statement is wrong because an increase in supply of capital will?
a. A. Increase the marginal benefit from employing labor and therefore increase the demand for labor and real wages.
b. B. Increase the marginal benefit from employing labor and therefore decrease the demand for labor and real wages.
c. C. Decrease the marginal benefit from employing labor and therefore increase the demand for labor and real wages.
d. D. Decrease the marginal benefit from employing labor and therefore decrease the demand for labor and real wages.
13 years ago
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