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Lighting2551 Lighting2551
wrote...
Posts: 342
3 days ago

Question 1.

A firm chooses its profit-maximizing quantity of capital by



comparing the price of capital with the price of labor.



determining the rate at which the firm can borrow funds to purchase plant and equipment.



comparing the marginal revenue product of capital with the rental price of capital.



examining the total cost of capital equipment.



Question 2.

The demand for capital is similar to the demand for labor in that



both are inelastic at high prices and elastic at low prices.



the marginal revenue product curve for labor is the same as the marginal revenue product curve for capital.



both are derived demands.



the marginal product of labor is derived from the marginal product of capital.

Textbook 

InMicro


Edition: 1st
Authors:
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cooldawg69cooldawg69
wrote...
Posts: 304
3 days ago
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Answer 1

comparing the marginal revenue product of capital with the rental price of capital.



Answer 2

both are derived demands.

1

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3 days ago
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