Laura Kaid owns a business and is willing to invest in capital until, at the margin, her investment yields a cash stream with a present value less than the marginal cost of the investment.

Question

Quizplus · Accepted Answer

Laura Kaid would only invest in capital until the marginal benefit (cash stream with a present value) equals or exceeds the marginal cost of the investment, not less than the cost.

Laura Kaid Owns a Business and Is Willing to Invest