Dale Jorgenson modeled the capital employment decision given a targeted output as one of how much capital to rent at a given rental price. One major implication of his approach is

Question

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Dale Jorgenson's approach to modeling the capital employment decision implies that the decision is similar to that for any other input (A), that capital should be hired up to the point where its marginal benefit equals the rental price (B), and that the private marginal cost of employing capital is equivalent to the market clearing rental price of capital (C). Therefore, all of the statements (A, B, and C) are implications of his approach, making D the correct answer.

Dale Jorgenson Modeled the Capital Employment Decision Given a Targeted