In a perfectly competitive capital market, when the firm's marginal revenue product of capital exceeds the market interest rate, the
A) firm is maximizing profit
B) firm should increase its quantity demanded of loanable funds
C) firm should decrease its quantity demanded of loanable funds
D) capital market is in equilibrium
E) firm should reduce the rate of interest
Correct Answer:
Verified
Q135: The marginal revenue product of capital is
Q136: Which of the following is not a
Q137: The main distinction between loanable funds and
Q138: The marginal cost of a dollar of
Q139: Which of the following is not true
Q141: The economy's demand for loanable funds is
Q142: The economy's supply of loanable funds is
A)
Q143: The loanable funds market is in equilibrium
Q144: In lesser-developed countries (LDCs), interest rates are
Q145: Some argue that "financing an investment with
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