QUESTION aying a firm will continue investing up to the point at which xpected rate of return is equal to the interest rate. O the marginal product of capital is equal to the marginal product of labor O the marginal revenue product of capital is equal to the price of capital O the interest rate is equal to the inflation rate O the return on capital is equal to depreciation is equivalent to saying that a firm will keep investing in new capital up to the point where

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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QUESTION 23
Saying a firm will continue investing up to the point at which
expected rate of return is equal to the interest rate.
O the marginal product of capital is equal to the marginal product of labor
is equivalent to saying that a firm will keep investing in new capital up to the point where the
O the marginal revenue product of capital is equal to the price of capital
O the interest rate is equal to the inflation rate
O the return on capital is equal to depreciation
Transcribed Image Text:QUESTION 23 Saying a firm will continue investing up to the point at which expected rate of return is equal to the interest rate. O the marginal product of capital is equal to the marginal product of labor is equivalent to saying that a firm will keep investing in new capital up to the point where the O the marginal revenue product of capital is equal to the price of capital O the interest rate is equal to the inflation rate O the return on capital is equal to depreciation
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