Suppose that a firm's capital equipment is expected to last indefinitely, that operating expenses on the equipment are negligible, and that the price of the firm's product is expected to remain constant in the future.Under these circumstances, the firm's marginal rate of return on investment is equal to capital's
A) marginal resource cost as a percentage of its marginal revenue product
B) marginal product as a percentage of its marginal revenue product
C) marginal revenue product as a percentage of its marginal product
D) marginal resource cost as a percentage of the price of capital
E) marginal revenue product as a percentage of its marginal resource cost
Correct Answer:
Verified
Q69: Exhibit 13-6 Q70: Each firm has a downward-sloping demand curve Q71: Exhibit 13-6 Q72: When the marginal rate of return expected Q73: Exhibit 13-7 Q75: IBM's marginal rate of return on investment Q76: Exhibit 13-5 Q77: The marginal rate of return on investment Q78: Exhibit 13-5 Q79: Exhibit 13-5 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
