The costs of investment depend on the ________ and the ________.
A)marginal product of capital; relative price of the firm's output
B)price of new capital goods; real interest rate
C)relative price of the firm's output; real interest rate
D)taxes levied on the revenue generated; relative price of the firm's output

Question

Quizplus · Accepted Answer

When firms consider new investments, they evaluate the cost or price of the new capital and the rate of interest on the loan taken to fund the capital investment.

The Costs of Investment Depend on the ________ and the ________

The Costs of Investment Depend on the and the