Which of the following is not true with respect to the rule used to determine the firm's profit-maximizing quantity demanded of capital?
A) It is similar to the rule used to determine the firm's profit-maximizing quantity demanded of labor.
B) It is similar to marginal labor cost divided by marginal revenue.
C) It takes the interest rate into consideration.
D) It equates marginal revenue product of capital to marginal factor cost.
E) It equates the present value of capital to expected future rents.
Correct Answer:
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