Which of the following correctly describes the marginal rate of return on capital?
a. The marginal rate of return equals the marginal product of capital multiplied by the marginal revenue product of capital.
b. The marginal resource cost of capital expressed as a percentage of its marginal revenue product.
c. The marginal revenue product of capital expressed as a percentage of its marginal cost.
d. The marginal rate of return equals the marginal product of capital added to the marginal revenue product of capital.
c
Economics
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What will be an ideal response?
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In the long run, perfectly competitive firms earn just enough revenue to
A) pay all fixed costs. B) pay all accounting costs. C) pay all opportunity costs. D) attract entry.
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