The marginal cost of a dollar of loanable funds is not
a. the interest rate
b. the same as the marginal physical product of capital
c. a measure of the marginal cost of capital
d. equal to the marginal revenue product of capital at the firm's profit-maximizing quantity of loanable funds
e. the change in a firm's total cost that results from adding one more dollar of loanable funds to production
A
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Changes in consumer confidence, business optimism, government spending, and foreign events that cause economic volatility are known as
A) Supply Shocks. B) Demand Shocks. C) Aggregate Demands. D) Real Business Cycles.
The figure below shows a firm that has two plants. Plant 1 has a marginal cost curve of mc1, plant 2 has a marginal cost curve of mc2, and the overall marginal cost curve is MC. Managers maximize their profit by producing ________ units at plant 1 and ________ units at plant 2.
A) 2 million; 4 million
B) 0; 5 million
C) 4 million; 5 million
D) None of the above answers is correct.
As trade restrictions are eliminated, increased imports
A. Shift the allocation of resources away from import-competing industries. B. Leave the composition of the GDP unchanged. C. Redistribute income out of import-using industries. D. Lower competition in product markets.
Human capital is:
A) the set of acquired skills and abilities that workers bring to the production of goods and services. B) the financial wealth the economy has available to produce goods and services. C) the ability to produce one of two goods at relatively lower cost. D) a factor of production only if it occurs naturally.