(Solution) If A Firm's MRP Of Capital = MFC, The Firm A. Is At Its Profit-maximizing Use Of Loanable Funds B. Should Decrease Its Quantity Demanded Of Loanable... | Snapessays.com


(Solution) If a firm's MRP of capital = MFC, the firm a. is at its profit-maximizing use of loanable funds b. should decrease its quantity demanded of loanable...


1. If a firm’s MRP of capital = MFC, the firm                                    a.   is at its profit-maximizing use of loanable funds                                    b.   should decrease its quantity demanded of loanable funds                                    c.   should increase its quantity demanded of loanable funds                                    d.   should hire more labor                                     e.   should raise the interest rate 2. The quantity supplied of loanable funds                                    a.   is inversely related to the rate of interest                                    b.   is directly related to the rate of interest                                    c.   affects a firm’s MRP of capital                                    d.   affects a firm’s MPP of capital                                    e.   affects the price of the good 3. Which of the following could cause the supply curve of loanable funds to shift to the left?                                    a.   decrease in productivity                                    b.   increase in the rate of interest                                    c.   decrease in the rate of interest                                    d.   increase in productivity                                    e.   expectation that future prices will increase                                  4. If the city mayor would perform mayoral duties for $10,000 because he just loves the  limelight, but the salary for the position is $45,000, then the mayor is earning                                    a.   $10,000 rental income                                    b.   $35,000 professional rent                                    c.   $45,000 differential rent                                    d.   $35,000 wage-related rent                                    e.   $10,000 wage-related rent

 


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This question was answered on: May 23, 2022

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