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If the Real Rental Price of Capital Is $10,000 Per

Question 55

Multiple Choice

If the real rental price of capital is $10,000 per unit and the real cost of capital is $9,000 per unit, to maximize profits a firm should:


A) add to its capital stock.
B) let its capital stock shrink.
C) keep its capital stock unchanged.
D) reduce the real rental price of capital.

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