If the nominal rental price of capital divided by the price of output is less than the marginal product of capital,a firm that wishes to maximize profits will
A) purchase more capital goods.
B) purchase fewer capital goods.
C) maintain the current level of capital goods.
D) allow capital goods to wear out without purchasing additional capital goods.
Correct Answer:
Verified
Q32: Figure 7.1 Q33: If the marginal product of labour is Q34: Diminishing marginal returns do not exist for Q35: Suppose that the production function is Y Q36: Explain why the differences in GDP per Q38: In Canada,economists estimate capital's share and labour's Q39: An increase in foreign investment in Brazil's Q40: Suppose that the production function for the Q41: Suppose that the production function for the Q42: Suppose that the production function for the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents