Solved

All of the Following Statements Are Correct Except

Question 100

Multiple Choice

All of the following statements are correct except


A) the supply of capital is derived from the value of marginal product of capital.
B) the lower the rental rate of capital,other things remaining the same,the greater is the quantity of capital demanded.
C) the higher the rental rate,other things remaining the same,the greater is the quantity of capital supplied.
D) profit-maximizing firms hire the quantity of capital services that makes the value of marginal product of capital equal to the rental rate of capital.
E) if the present value of the future rental payments of an item of capital equipment is less than the cost of buying the capital,the firm will rent or lease the equipment.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents