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Author Question: Saying a firm will continue investing up to the point at which ________ is equivalent to saying that ... (Read 32 times)

Kthamas

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on: Apr 19, 2019

Question 1

Existing firms in the rental car industry will stay in the industry but will not want to undertake any investment projects other than to replace depreciating capital stock if the normal rate of return in the industry is ________ and the return that firms earn in this industry equals exactly ________.


◦ 6%; 6%
◦ 4%; 7%
◦ 12%; 9%
◦ 1%; 2%

Question 2

Saying a firm will continue investing up to the point at which ________ is equivalent to saying that a firm will keep investing in new capital up to the point where the expected rate of return is equal to the interest rate.


◦ the marginal product of capital is equal to the marginal product of labor
◦ the interest rate is equal to the inflation rate
◦ the marginal revenue product of capital is equal to the price of capital
◦ the return on capital is equal to depreciation
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by Kthamas on Apr 19, 2019

ryansturges

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Kthamas

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Reply #2 on: Apr 19, 2019
Thanks


ryansturges

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Reply #3 on: Apr 19, 2019
Welcome :)


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