Author Question: Suppose that a firm's capital equipment is expected to last indefinitely, that operating expenses on ... (Read 62 times)

Beheh · **on:** Jun 30, 2018

Suppose that a firm's capital equipment is expected to last indefinitely, that operating expenses on the equipment are negligible, and that the price of the firm's product is expected to remain constant in the future. Under these circumstances, the firm's marginal rate of return on investment is equal to capital's
a. marginal resource cost as a percentage of its marginal revenue product
b. marginal product as a percentage of its marginal revenue product
c. marginal revenue product as a percentage of its marginal product
d. marginal resource cost as a percentage of the price of capital
e. marginal revenue product as a percentage of its marginal resource cost

Question 2

Which of the following is not true about the U.S. trade balance since 1979?
a. The balance of trade has been in deficit.
b. During recessions the balance has usually been flat.
c. The balance of trade has been in surplus.
d. When the economy expanded, the demand for imports increased.
e. When the economy expanded, the trade balance worsened.