If a firm's MRP of capital = MFC, the firm

a. is at its profit-maximizing use of loanable funds
b. should decrease its quantity demanded of loanable funds
c. should increase its quantity demanded of loanable funds
d. should hire more labor
e. should raise the interest rate


A

Economics

You might also like to view...

If in the third quarter of 2016 total investment spending was $4,768 billion and depreciation was $3,292 billion, then the amount counted in GDP, which is known as gross investment, would be

A) $1,476 billion. B) $3,292 billion. C) $4,768 billion. D) $8,060 billion.

Economics

Using the table above, if the current market value of the dollar is 90 francs

A) investor A expects dollar appreciation, but B and C expect depreciation. B) investor C expects dollar depreciation, but A and B expect appreciation. C) all three investors expect the dollar to appreciate. D) all three investors expect the dollar to depreciate.

Economics

The table above gives the utility from pens and pencils. The marginal utility derived from the third pen is

A) 200. B) 155. C) 445. D) 45.

Economics

The optimal output of a collective consumption good is found by_____

a. equaling marginal cost and the vertical summation of all individual's demand curves b. equaling price and marginal cost c. equaling marginal cost and the horizontal summation of all individual's demand curves d. equaling marginal cost and long-run average total cost

Economics