This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Up to which point will a perfectly competitive firm continue to invest? Explain carefully. What ... (Read 42 times)

amal

  • Hero Member
  • *****
  • Posts: 572
on: Jun 29, 2018
Up to which point will a perfectly competitive firm continue to invest? Explain carefully.
 
  What will be an ideal response?

Question 2

Refer to Figure 18-1. The appreciation of the euro is represented as a movement from
 
  A) A to B. B) D to A. C) A to C. D) B to C. E) D to C.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

milbourne11

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jun 29, 2018
Answer to Question 1

A perfectly competitive profit-maximizing firm will keep investing in new capital up to the point at which the expected rate of return is equal to the interest rate. This is equivalent to saying that the firm will continue investing up to the point at which the marginal revenue product of capital is equal to the price of capital, or MRPK = PK.

Answer to Question 2

B


amal

  • Member
  • Posts: 572
Reply 2 on: Jun 29, 2018
:D TYSM

ryhom

  • Member
  • Posts: 366
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

The calories found in one piece of cherry cheesecake could light a 60-watt light bulb for 1.5 hours.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Two-Point Threshold Device for Measuring Touch Acuity Two-Point Threshold Device for Measuring Touch Acuity
The Method for Determining the Two-Point Discrimination Threshold The Method for Determining the Two-Point Discrimination Threshold
Alternative for pass-point test Alternative for pass-point test
The slope of the curve y = ax^3 - bx^2 + cx - 3 at x = 2 is 5. If the point of inflection of the cur The slope of the curve y = ax^3 - bx^2 + cx - 3 at x = 2 is 5. If the point of inflection of the cur
Social scientists have not done well at devising theories to explain lovely romantic moments Social scientists have not done well at devising theories to explain lovely romantic moments
Constructing a Three-Point Recombination Map Constructing a Three-Point Recombination Map
Video: Miller's reaction chamber experiment Animation

For a complete list of videos, visit our video library