A firm that is maximizing its profits will keep renting machines up to the point where:
a. the marginal productivity of a capital is maximized.
b. the marginal value product of machines is maximized.
c. the marginal value product of machines is equal to the market rental rate for machines.
d. the machine's market rental rate is minimized.
c
You might also like to view...
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
A commercial bank has required reserves of $60 million and the reserve ratio is 20%. How much are the commercial bank's checkable-deposit liabilities?
A. $1,200 million B. $120 million C. $300 million D. $900 million
What is the rate of return on a bond with a coupon of $38 payable in one year that was purchased for $950 and sold one year later for $931?
A) 2% B) 4% C) 6% D) 19%
The magnitude of the impact taxes have on job-search effort is:
A. inconclusive. B. hugely negative. C. slightly positive. D. slightly negative.