The profit rate of a firm that rents capital is equal to:
A) the marginal product of capital minus the cost of capital.
B) the cost of capital minus the marginal product of capital.
C) zero.
D) a negative number, if it is adding to its capital stock.
Correct Answer:
Verified
Q7: The rate of depreciation is the:
A) nominal
Q8: Use the following to answer questions :
Exhibit:
Q9: Business fixed investment includes:
A) rental housing that
Q10: The cost of capital for investment, if
Q11: Investment spending is:
A) generally countercyclical.
B) generally procyclical.
C)
Q13: The investment spending component of GDP includes
Q14: If the real rental price of capital
Q15: According to the neoclassical model of investment,
Q16: The standard model of business fixed investment
Q17: The real cost of capital is the:
A)
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