The marginal revenue product of capital is
A) the change in the firm's revenue as a result of employing one more unit of capital, such as a machine.
B) the economic rent received by hiring an additional unit of capital.
C) the cost to the firm of renting an additional unit of capital.
D) the revenue generated by substituting capital for labor in the production process.
A
Economics
You might also like to view...
Describe the effects of an oil price shock in a Keynesian model; why are such supply shocks difficult to handle using macroeconomic stabilization policies?
What will be an ideal response?
Economics
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Economics