Multiple Choice
If the capital stock is fixed and something happens to raise the marginal product of capital for any given quantity of capital, then the real rental price of capital will:
A) remain the same.
B) rise.
C) fall.
D) fall and then rise.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q18: When the capital stock reaches a steady
Q35: What variables, in addition to current income,
Q37: If corporate profit were defined as the
Q37: What are the two kinds of firms
Q41: For a firm facing financing constraints on
Q43: Milton Friedman argued that, over long periods
Q44: John Maynard Keynes believed that the average
Q72: Economic booms should stimulate investment spending because
Q84: If the replacement cost of installed capital
Q103: If consumers obey the permanent-income hypothesis and