Author Question: A firm's decision to invest in a project is based on the A) real interest rate and expected total ... (Read 81 times)

humphriesbr@me.com · **on:** Jun 29, 2018

A firm's decision to invest in a project is based on the

A) real interest rate and expected total revenue.
B) nominal interest rate and expected total revenue.
C) nominal interest rate and the expected profit.
D) real interest rate and the expected profit.

Question 2

According to the law of diminishing returns, an additional unit of

A) capital produces more output than an additional unit of labor.
B) labor decreases output.
C) labor produces more output than the previous unit.
D) labor produces less output than the previous unit.