Firms will borrow to finance capital expansion until the MRP of the investment equals the
a. MRP of labor.
b. marginal cost of the finished good.
c. marginal physical product of capital.
d. interest payment charged for borrowing.
d
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Looking at the components of the income approach we see that
A) compensation of employees is the largest category. B) consumption is the largest category. C) profits are the largest category. D) rental income is the largest category.
Price discrimination, where different units of a good are sold for different prices
A) is impossible because there can only be one market price. B) can be effectively practiced by all monopolists. C) maximizes consumer welfare because each consumer pays only the price he or she is willing to pay. D) is possible if the good cannot be resold.
Our most important trading partner is _____________.
Fill in the blank(s) with the appropriate word(s).
Moving along a budget line, the prices of both goods:
a. vary and the consumer's budget is held constant. b. are held constant and the consumer's budget varies. c. and the consumer's budget are held constant. d. and the consumer's budget vary.