All of the Following Statements Are Correct Except

question 84

Multiple Choice

All of the following statements are correct except

• A)the supply of capital is derived from the value of marginal product of capital.
• B)the lower the rental rate of capital,other things remaining the same,the greater is the quantity of capital demanded.
• C)the higher the rental rate,other things remaining the same,the greater is the quantity of capital supplied.
• D)profit-maximizing firms hire the quantity of capital services that makes the value of marginal product of capital equal to the rental rate of capital.
• E)if the present value of the future rental payments of an item of capital equipment is less than the cost of buying the capital,the firm will rent or lease the equipment.

---

Definitions:

Rigidity

The lack of flexibility or the unwillingness to adapt or change one's beliefs, methods, or approaches.

Discipline Problems

Issues related to managing behavior and enforcing rules, typically in educational or organizational settings, that disrupt the learning or working environment.

Innovation

The process of creating new ideas, products, or methods, often leading to improvements or advancements in a particular field.

Requirements for Innovation

Critical conditions or inputs needed to foster creativity, including a supportive culture, resources, and an environment that encourages risk-taking and experimentation.