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Author Question: The firm should continue investing (Read 138 times)

Haya94

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on: Apr 19, 2019

Question 1

Saying a firm will continue investing up to the point at which the marginal revenue product of capital is equal to the price of capital is equivalent to saying that a firm will keep investing in new capital up to the point where


◦ the expected rate of return is zero.
◦ economic profit is zero.
◦ the expected rate of return is equal to the interest rate.
◦ the price of capital equals the interest rate.

Question 2

The firm should continue investing


◦ even if the 
MRPK is equal to the price of capital.
◦ only as long as the 
MRPK is less than the price of capital.
◦ up to the point where the 
MRPK equals the price of capital.
◦ only as long as the price of capital is greater than the interest rate.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by Haya94 on Apr 19, 2019

blakeserpa

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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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Haya94

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Reply #2 on: Apr 19, 2019
Thank you!


blakeserpa

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Reply #3 on: Apr 19, 2019
Always glad to help...


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