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Marginal Efficiency of Capital (MEC) is defined as:
  • a)
    The rate of return on investment for additional units of investment.
  • b)
    The expected annual rate of return on an additional unit of a capital good.
  • c)
    The cost of capital for investment projects.
  • d)
    The rate of interest set by the central bank.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Marginal Efficiency of Capital (MEC) is defined as:a)The rate of retur...
MEC represents the expected rate of return on an extra unit of capital investment. It is the rate of return anticipated from investing in a newly produced asset. This concept helps entrepreneurs decide whether to undertake a particular investment project based on its expected returns compared to its supply price.
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Marginal Efficiency of Capital (MEC) is defined as:a)The rate of return on investment for additional units of investment.b)The expected annual rate of return on an additional unit of a capital good.c)The cost of capital for investment projects.d)The rate of interest set by the central bank.Correct answer is option 'B'. Can you explain this answer?
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Marginal Efficiency of Capital (MEC) is defined as:a)The rate of return on investment for additional units of investment.b)The expected annual rate of return on an additional unit of a capital good.c)The cost of capital for investment projects.d)The rate of interest set by the central bank.Correct answer is option 'B'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Marginal Efficiency of Capital (MEC) is defined as:a)The rate of return on investment for additional units of investment.b)The expected annual rate of return on an additional unit of a capital good.c)The cost of capital for investment projects.d)The rate of interest set by the central bank.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Marginal Efficiency of Capital (MEC) is defined as:a)The rate of return on investment for additional units of investment.b)The expected annual rate of return on an additional unit of a capital good.c)The cost of capital for investment projects.d)The rate of interest set by the central bank.Correct answer is option 'B'. Can you explain this answer?.
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