In determining the benefit of additional investment to the representative firm,we consider the marginal product of
A) current capital.
B) future capital
C) current labor.
D) future labor.

Question

Quizplus · Accepted Answer

The marginal product of future capital is considered because it reflects the additional output generated by investing in more capital, which is relevant for assessing the benefit of additional investment.

In Determining the Benefit of Additional Investment to the Representative