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Author Question: Once the marginal product of capital is equal to the real rental cost of capital ________. A) ... (Read 119 times)

Medesa

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on: Jun 30, 2018
Once the marginal product of capital is equal to the real rental cost of capital ________.
 
  A) inventories will stabilize
  B) depreciation will equal the marginal rate of substitution
  C) the economy will reach full employment
  D) a profit-seeking firm will stop acquiring capital

Question 2

Given the aggregate production function Y = A , the Solow residual equals ________ when Y is 60, K = 5 and L = 5.
 
  A) 2.4
  B) 35
  C) 25
  D) 12


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jgranad15

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

D


Medesa

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Reply 2 on: Jun 30, 2018
Excellent

covalentbond

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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