To maximize profit a firm should hire capital:
A) until it can produce no more of its product.
B) until the marginal product of labour begins to fall.
C) until the marginal product of capital equal the real rental price of capital.
D) until the marginal product of capital is zero.
Correct Answer:
Verified
Q44: In the model why does the return
Q45: Real saving is: Q46: In the market clearing model, nominal saving Q47: In the market clearing model, the demand Q48: How is profit calculated in the model? Q50: What causes the labour and capital markets Q51: In the market clearing model: Q52: In the market clearing model, nominal saving Q53: An investment in the model of this Q54: What is the household real budget constraint
A) 
A)households can owe
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