You Are Trying to Figure Out How Much Capacity to Add

question 4

Multiple Choice

You are trying to figure out how much capacity to add to your factory.You will increase capacity as long as

• A)the expected marginal product of capital is positive.
• B)the expected marginal product of capital is greater than or equal to the marginal product of capital.
• C)the expected marginal product of capital is greater than or equal to the expected marginal product of labour.
• D)the expected marginal product of capital is greater than or equal to the user cost of capital.

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Definitions:

Utility

In economics, the total satisfaction received from consuming a good or service.

Big Five Personality Dimensions

A model outlining five broad dimensions of human personality: openness to experience, conscientiousness, extraversion, agreeableness, and neuroticism.

Neuroticism

A personality trait characterized by the tendency to experience negative emotions such as anxiety, anger, or depression more easily than others.

Extraversion

A personality trait typified by outgoingness, high energy, and a preference for social interactions.