Multiple Choice
Saying a firm will continue investing up to the point at which the marginal revenue product of capital is equal to the price of capital is equivalent to saying that a firm will keep investing in new capital up to the point where
A) the expected rate of return is zero.
B) economic profit is zero.
C) the expected rate of return is equal to the interest rate.
D) the price of capital equals the interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
Q41: You agree to lend _ to a
Q80: Payments for capital include interest and rent.
Q106: Suppose that a normal rate of return
Q127: _ is an example of intangible capital.<br>A)
Q138: Capital goods yield benefits<br>A) as soon as
Q162: The value of capital is as great
Q169: A firm's capital is measured as a
Q174: Infrastructure is capital that provides services to
Q205: A firm's _ is measured as a
Q206: The formula for present discounted value is