Author Question: A technological improvement in the physical capital available to the firm has a similar impact on a ... (Read 58 times)

yagurl · **on:** Oct 12, 2022

Question 1

A firm must evaluate the value of the services that a piece of capital equipment can deliver to the firm over its lifetime. The firm does this by estimating its
◦ marginal product.
◦ present value.
◦ marginal revenue product.
◦ future value.
◦ rate of depreciation.

Question 2

A technological improvement in the physical capital available to the firm has a similar impact on a firm's desired capital stock as
◦ a reduction in the price of capital goods.
◦ a decrease in capital's MRP.
◦ a decrease in the price of the firm's product.
◦ a shift to the left of the capital's MRP curve.
◦ an increase in the interest rate.

wangyichun · **Reply #1 on:** Oct 12, 2022

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