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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.
assume an economy lasts for 2 periods. in period 1 only 1 agent is born this agent lives for 2 periods. in period 2 two
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