Firms buy new capital goods only if they expect this investment to yield:
a. a higher return than other possible uses of their funds.
b. the same return as other possible uses of their funds.
c. no return as compared to other uses of their funds.
d. a lower return than other possible uses of their funds.
a
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Restricting imports of Brazilian shoes will
a. raise the price of both Brazilian and domestically produced shoes b. raise the price of Brazilian shoes but lower the price of domestically produced shoes c. lower the price of Brazilian shoes but raise the price of domestically produced shoes d. lower the price of both Brazilian and domestically produced shoes e. benefit the producers of shoes in Brazil
Suppose a certain firm is able to produce 165 units of output per day when 15 workers are hired. The firm is able to produce 181 units of output per day when 16 workers are hired, holding other inputs fixed. The marginal product of the 16th worker is
a. 10 units of output. b. 11 units of output. c. 16 units of output. d. 181 units of output.