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What Is Meant by the Net Marginal Productivity of an Investment

Question 61

Multiple Choice

What is meant by the net marginal productivity of an investment?


A) It is the marginal revenue minus marginal cost from the last unit of capital.
B) It is the total addition to productivity from an extra unit of capital minus the cost of capital.
C) It is the additional revenue generated by selling an extra unit of output.
D) It is the extra output produced by an extra unit of capital minus the marginal cost.

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