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Under Which of the Following Circumstances Will a Competitive Firm

Question 37

Multiple Choice

Under which of the following circumstances will a competitive firm choose to own more capital,assuming that the purchase price of the capital and the interest rate remain unchanged?


A) the stock of capital in the entire economy increases
B) other firms are increasing their stock of capital
C) the lifespan of the capital is reduced
D) technological improvement has made the capital more productive
E) the price of the product the firm produces declines

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