If a perfectly competitive firm can acquire the services of as much capital as it wishes at a constant rental rate of r per year, it should employ capital up to the point at which the
A) Rental rate is equal to variable cost
B) Rental rate is equal to marginal cost
C) Marginal product of capital is equal to r
D) Value of the marginal product of capital is equal to r
Correct Answer:
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Q2: Interest rates are determined by the
A)Rental rate
Q4: The quantity of loanable funds supplied by
Q5: In the loanable funds market
A)Demand is downward
Q6: Say a firm that sells its product
Q8: According to the text, a rise in
Q9: Economists are strongly united in their belief
Q10: According to the textbook, if a wave
Q10: Suppose the purchase price for a fax
Q11: If the nominal interest rate is 10%
Q19: A machine produces no benefits now, but
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