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

Author Question: The firm should continue investing (Read 166 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?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

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 ...
Continue the process until the canister is empty and the engine stalls. Remove the cleaning ... Continue the process until the canister is empty and the engine stalls. Remove the cleaning ...
Greet a First-Time Client With a Firm Handshake. Greet a First-Time Client With a Firm Handshake.
Basic two-handed kneading. Tissues are lifted with the whole hand in firm contact. Basic two-handed kneading. Tissues are lifted with the whole hand in firm contact.
Continue holding the head with one hand, and apply effleurage superior to inferior along the ... Continue holding the head with one hand, and apply effleurage superior to inferior along the ...
The oceans continue to absorb most of the excess energy trapped by greenhouse gases The oceans continue to absorb most of the excess energy trapped by greenhouse gases
Video: Dorsal Recumbent Position

For a complete list of videos, visit our video library