If the marginal product of capital is greater than the rental cost of capital in terms of goods and services, then ________
A) the firm should continue to produce using that same amount of capital
B) the firm should add additional capital
C) the firm should reduce the amount of capital is using
D) diminishing returns have been avoided
B
You might also like to view...
What is backward induction?
What will be an ideal response?
When a firm is experiencing decreasing marginal costs, it implies
a. marginal productivity is decreasing b. workers are getting more unproductive c. a constant marginal productivity d. increasing marginal productivity
The term ______ is used to describe the common pattern whereby each marginal unit of a consumed good provides less of an addition to utility than the previous unit.
A. marginal utility pattern B. marginal income utility C. diminishing marginal utility D. decreasing marginal utility
A market exists for the sale and purchase of
a. Computer services. b. Nuclear warheads. c. Illegal drugs. D. All of the above.