A firm will keep investing until the value of the marginal product of capital is equal to
A) the rental cost of capital
B) the value of the marginal product of labor
C) the rate of depreciation minus the real interest rate
D) the market interest rate minus the rate of depreciation
E) total output divided by the capital stock
Correct Answer:
Verified
Q1: If the marginal product of capital is
Q2: Which of the following statements is FALSE?
A)investment
Q3: Leaving taxes aside, a firm will calculate
Q4: Assume a Cobb-Douglas production function in which
Q6: Which of the following is NOT included
Q7: The rental cost of capital will fall
Q8: Which policy mix serves best to encourage
Q9: Assume the nominal interest rate is i
Q10: The theory of investment contains aspects of
Q11: Assume a Cobb-Douglas production function in which
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