Multiple Choice
Profit maximization implies that firms will want to ________.
A) accumulate labor while the MPL is greater than the real wage
B) accumulate capital while the MPK is lower than the rental price of capital
C) accumulate labor while the MPK is greater than the rental price of capital
D) accumulate capital while the MPL is greater than the real wage
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q68: Profit maximization implies that firms will want
Q69: An economy's production function is Y =
Q70: Which of the following constitutes an input
Q71: Equilibrium market prices for capital and labor
Q72: Capital per person k is higher in
Q74: Real capital income is given by _.<br>A)MPK
Q75: Which of the following will cause an
Q76: Real labor income is given by _.<br>A)MPL
Q77: Equilibrium market prices for capital and labor
Q78: As an investor,negative supply shocks are not