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:
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