Multiple Choice
You are trying to figure out how much capacity to add to your factory.You will increase capacity as long as
A) the expected marginal product of capital is positive.
B) the expected marginal product of capital is greater than or equal to the marginal product of capital.
C) the expected marginal product of capital is greater than or equal to the expected marginal product of labor.
D) the expected marginal product of capital is greater than or equal to the user cost of capital.
Correct Answer:
Verified
Correct Answer:
Verified
Q82: If an investor has a tax rate
Q83: According to the Ricardian equivalence proposition,a temporary
Q84: If a firm's expected marginal product of
Q85: David consumes 140 in the current period
Q86: Calculate the user cost of capital of
Q88: You have just purchased a home that
Q89: When a person gets an increase in
Q90: An increase in the expected real interest
Q91: If the government reduces the effective tax
Q92: Suppose the government provides a tax cut