A firm should increase its investment as long as:
a. marginal resource cost exceeds the interest rate.
b. marginal resource cost exceeds marginal revenue product.
c. marginal rate of return on investment exceeds the interest rate.
d. the interest exceeds the marginal rate of return on investment.
c
Economics
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What is meant by diminishing marginal benefits? Are you likely to experience diminishing marginal benefits for goods that you like a lot? Are there exceptions to the general rule of diminishing marginal benefits? (Hint: think about batteries that you
would use in a flashlight that requires two batteries.) Explain your answer.
Economics
At the profit-maximizing level of output, marginal profit
A) is also maximized. B) is zero. C) is positive. D) is increasing. E) may be positive, negative or zero.
Economics