The firm's profit-maximizing level of capital is determined where:?

Question

a. the marginal revenue product of capital curve cuts the total resource cost curve

b. the marginal revenue product capital curve is greater than or equal to the marginal resource cost curve

c. the price of capital line cuts the marginal cost of capital curve from above.

d. the price of capital line cuts the marginal cost of capital curve from above.

e. the marginal revenue product of capital is tangent to the intrest rate line

Answer 1

b. MR = MC