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Homework answers / question archive / Question 5 2 pts In the equation RXP - MPK+4P
Question 5 2 pts In the equation RXP - MPK+4P.4. is the: marginal product of capital O arbitrage equation. real interest rate. opportunity cost of capital. rate of return to capital. Question 6 2 pts In the equation RxP. - MPK + 4px, RXP, is the: return to a bank account. capital gain of capital. O return to stock prices. return to capital. O user cost of capital if taxes are zero.
Question 7 2 pts The equation MPR-R-( 4PW): states that if the real interest rate is zero, arbitrage equation states the marginal product of capital is equal to minus the capital gain All of these answers are correct. states that a firm should invest in new capital until the marginal product of capital is equal to the difference between the real interest rate and the growth rate of the price of capital. is the capital arbitrage equation. states that if a firm has "too much capital, it should divest of some of its capital stock. Question 8 2 pts The user cost of capital is: equal to negative capital gain. equal to the real interest rate. zero, if taxes are zero. the cost of using one more unit of capital. O higher as corporate taxes fall.
