If the Marginal Product of Capital Is Greater Than the Rental

question 71

Multiple Choice

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

---

Definitions:

Peristalsis

The series of wave-like muscle contractions that move food through the digestive tract.

Digestive System

The group of organs responsible for breaking down food, absorbing nutrients, and eliminating waste products from the body.

Salivary Glands

Exocrine glands located in the mouth that produce saliva, aiding in digestion and maintaining oral health.

Cholecystokinin

A hormone that stimulates the digestion of fat and protein by releasing bile from the gallbladder and digestive enzymes from the pancreas.