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

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Definitions:

King Ferdinand

A monarch, notably Ferdinand II of Aragon, who alongside Queen Isabella, funded Christopher Columbus's 1492 voyage and played a significant role in the unification of Spain.

Queen Isabella

A key historical figure, Queen of Castile and León, known for her sponsorship of Christopher Columbus's 1492 voyage that led to the discovery of the Americas.

Admiral Zheng He

A prominent Chinese explorer and naval commander of the Ming dynasty known for his expeditions to Southeast Asia, South Asia, the Middle East, and East Africa.

Seafaring Technology

Innovations and advancements in the design, construction, and navigation of ships and boats, enabling exploration, trade, and military activities across seas and oceans.