In general,a profit- maximizing firm will purchase a unit of capital as long as its purchase price is
A) less than its present marginal revenue product.
B) equal to the present value of the stream of marginal revenue product generated by the capital.
C) no more than the present value of the stream of marginal revenue product generated by the capital.
D) no less than the present value of the stream of marginal revenue product generated by the capital.
E) non- negative.
Correct Answer:
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