A firm will continue investing up to the point at which the marginal revenue product of capital is equal to its rental cost.
Answer the following statement true (T) or false (F)
True
You might also like to view...
The expected return on dollar deposits in terms of foreign currency can be written as the ________ of the interest rate on dollar deposits and the expected appreciation of the dollar
A) product B) ratio C) sum D) difference
The ceteris paribus assumption is important in economics because
A) all empirical data are equal. B) it would be impossible to relate the changes in one variable to another variable without holding other variables constant. C) economic data move very slowly over time and so they can always be considered constant. D) models are always complex and require as many variables as possible.
Exporting nations often agree to voluntary export restraints (VERs) in an attempt to:
A. employ more workers in the importing nation. B. avoid more restrictive trade policies. C. increase global welfare. D. decrease inflation.
To reduce the bias in the consumer price index, the Bureau of Labor Statistics
A) updates the market basket every two years, rather than every 10 years. B) updates the market basket every 10 years, rather than every two years. C) incorporates substitutions by consumers when prices of specific products rise rapidly. D) incorporates substitutions by consumers when prices of specific products fall rapidly.