A profit maximizing firm will hire additional units of capital as long as the rental price of capital is

equal or greater than the marginal revenue product of capital

Explanation:

In a given situation where a firm is considering if and when to inject more capital investment into the business operation, such action usually rests on the positive or profitability of the marginal product of capital. Based on the neoclassical model, in a perfectly competitive market, firms will increase investment if the rental price is equal (equilibrium point) or greater than the cost of capital.

Hence, the correct answer is "equal or greater than the marginal revenue product of capital

match each type of restriction with one of its effects.

a. land-use laws

b. labor laws

c. banking regulations

a. controlled development of towns and cities

b. protection of young workers

c. greater financial stability

answer; organizational;