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

Author Question: The firm should continue investing (Read 132 times)

Haya94

  • Hero Member
  • *****
  • Posts: 558
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
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Haya94 on Apr 19, 2019

blakeserpa

  • Sr. Member
  • ****
  • Posts: 338
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.
Answer Preview
Only 29% of students answer this correctly


Haya94

  • Hero Member
  • *****
  • Posts: 558
Reply #2 on: Apr 19, 2019
Thank you!


blakeserpa

  • Sr. Member
  • ****
  • Posts: 338
Reply #3 on: Apr 19, 2019
Always glad to help...


« previous next »
 

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo
Abdominal thrusts are delivered with a firm thrust into the patient’s abdomen with an upward ... Abdominal thrusts are delivered with a firm thrust into the patient’s abdomen with an upward ...
During their elderly years, men and women continue to exhibit aspects of the gender roles that they ... During their elderly years, men and women continue to exhibit aspects of the gender roles that they ...
Despite the globe’s vast social change, people all over the world continue to make race a ... Despite the globe’s vast social change, people all over the world continue to make race a ...
One-handed kneading. Tissues are lifted with the whole hand in firm contact. One-handed kneading. Tissues are lifted with the whole hand in firm contact.
Firm handshake Firm handshake
Video: Amniocentesis and CVS Animation

For a complete list of videos, visit our video library