To assess a firms demand for capital we must determine the, Business Economics

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To assess a firms demand for capital we must determine the

Which of the following is (are) true?

A) To assess a firm's demand for capital we must determine the present value of marginal revenue products and marginal factor costs of capital.

B) A firm maximizes profit in the hiring of capital when the MRP of capital is greater than the MFC of capital. C) A firm should hire less capital if the MRP of capital is greater than the MFC of capital.

D) A and B are true.

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Business Economics: To assess a firms demand for capital we must determine the

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Business Economics: To assess a firms demand for capital we must determine the

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