In General,a Profit-Maximizing Firm Will Purchase a Unit of Capital

question 93

Multiple Choice

In general,a profit-maximizing firm will purchase a unit of capital as long as its purchase price is

• A)non-negative.
• B)equal to the present value of the stream of marginal revenue product generated by the capital.
• C)no less than the present value of the stream of marginal revenue product generated by the capital.
• D)no more than the present value of the stream of marginal revenue product generated by the capital.
• E)less than its present marginal revenue product.

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