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Investment and the Employment of Capital

Investment and the Employment of Capital

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Published by: api-3825580 on Oct 18, 2008
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03/18/2014

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Investment and the
Employment of Capital
The Pricing of Capital and
Capital Services
\u2022Factor prices versus the price of factor
services
\u2013factor prices and factor rental rates
\u2013stocks and flows
\u2022Profit maximising employment of capital
\u2013marginal cost of capital (MCK)
\u2013marginal revenue product of capital (MRPK)
\u2013profit maximising in perfect capital markets
Perfectly competitive factor market
O
Q of factor
\u00a3
MRPf
Pf1

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