What Is Meant by the Net Marginal Productivity of an Investment

question 45

Multiple Choice

What is meant by the net marginal productivity of an investment?

• A)It is the marginal revenue minus marginal cost from the last unit of capital.
• B)It is the total addition to productivity from an extra unit of capital minus the cost of capital.
• C)It is the additional revenue generated by selling an extra unit of output.
• D)It is the extra output produced by an extra unit of capital minus the marginal cost.

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