Which of the following statements regarding equilibrium in the markets for capital and for a natural resource used in producing a good is true?
A) The marginal revenue product of capital will equal the marginal revenue product of the natural resource.
B) The rental price of capital will equal the price of the natural resource.
C) The marginal product of capital will equal the rental price of capital and the marginal product of the natural resource will equal the price of the natural resource.
D) The marginal revenue product of capital will equal the rental price of capital and the marginal revenue product of the natural resource will equal the price of the natural resource.
Correct Answer:
Verified
Q249: The town of Saddle Peak has a
Q250: Wally, Vijay, Sandra, and Consuela make up
Q251: According to the marginal productivity theory of
Q252: The marginal revenue product of capital is
A)the
Q253: A commission system of compensation reduces the
Q255: Compared to a competitive market, a firm
Q256: When workers are paid on a piece-rate
Q257: One reason why firms would choose a
Q258: What is personnel economics?
Q259: A firm might prefer to choose a
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