You are trying to figure out how much capacity to add to your factory. You will increase capacity as long as

You are trying to figure out how much capacity to add to your factory. You will increase capacity as long as 




(a) the expected marginal product of capital is positive.
(b) the expected marginal product of capital is greater than or equal to the marginal product of capital.
(c) the expected marginal product of capital is greater than or equal to the expected marginal product of labor.
(d) the expected marginal product of capital is greater than or equal to the user cost of capital.




Answer: D


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