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
Economics
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According to the classical theory, the aggregate supply curve is
A) downward sloping. B) upward sloping. C) vertical. D) horizontal.
Economics
The greater the price elasticity of demand, the
a. more likely the product is a necessity. b. smaller the responsiveness of quantity demanded to a change in price. c. greater the percentage change in price over the percentage change in quantity demanded. d. greater the responsiveness of quantity demanded to a change in price.
Economics