If the marginal revenue product of capital for a profit-maximizing firm is $800 and the price of capital is $600, then the firm
A) has just the right amount of capital.
B) should decrease the amount of other inputs its production process requires.
C) should increase the amount of other inputs its production process requires.
D) should purchase or rent more capital.
E) should reduce the amount of capital.
Correct Answer:
Verified
Q27: What is the difference between financial capital
Q28: The equilibrium price of capital
A)is not affected
Q29: The profit-maximizing principle that marginal revenue product
Q30: The marginal revenue product of capital is
Q31: The demand for capital is a derived
Q33: A profit-maximizing firm will rent or purchase
Q34: Exhibit 16-1 Q35: In a competitive market, the rental price Q36: A firm needs to raise financial capital Q37: Exhibit 16-1 ![]()
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