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The Marginal Cost of a Dollar of Loanable Funds Is

Question 125

Multiple Choice

The marginal cost of a dollar of loanable funds is not


A) the interest rate
B) the same as the marginal physical product of capital
C) a measure of the marginal cost of capital
D) equal to the marginal revenue product of capital at the firm's profit-maximizing quantity of loanable funds
E) the change in a firm's total cost that results from adding one more dollar of loanable funds to production

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