A firm maximizes profits when the ________ equals the ________
A) actual marginal product of capital; actual marginal product of labor
B) actual marginal product of capital; expected marginal product of capital
C) expected marginal product of capital; the opportunity cost of capital
D) expected marginal product of capital; user cost of capital
D
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The most powerful tool unions have at their disposal when bargaining with management is
A) the Taft-Hartley Act. B) the ability to strike. C) the secondary boycott. D) the power of pure competition.
Firms cannot resemble
A) incomplete contracts. B) democracies. C) an organization without externalities. D) a benevolent dictator.
Diversifying
a. increases the standard deviation of the value of a portfolio indicating its risk has increased. b. increases the standard deviation of the value of a portfolio indicating its risk has decreased. c. decreases the standard deviation of the value of a portfolio indicating its risk has increased. d. decreases the standard deviation of the value of a portfolio indicating its risk has decreased.
The exceptional economic growth in East Asia during the last half of the twentieth century was in large part due to governments in this region ______.
a. limiting the number of births b. encouraging citizens to spend and consume rather than save c. ensuring good basic education for their citizens d. protecting citizens’ property rights