Consider the following statements regarding the Incremental Capital Output Ratio (ICOR):
1. It indicates how efficiently additional capital is being utilized to generate output.
2. It represents the additional amount of capital needed to produce one more unit of output.
3. It is calculated as the ratio of change in capital to the change in output.
4. It refers to the additional unit of output produced from one more unit of capital.
How many of the above statements are correct?
1
Only two
2
Only three
3
All four
4
Only one