The Equation MPK = R* Yields

question 15

Multiple Choice

The equation MPK = r* yields:

• A) the amount of capital in an economy
• B) the optimal amount of capital, K*, a firm fires
• C) the optimal amount of labor, L*, a firm hires
• D) the quantity of capital a firm wants to hire at any rental rate of capital
• E) None of these answers are correct.

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