Investment in real (human or physical) capital will take place and
the stock of such capital will expand
1. when the present value to the owner of the
earnings from the capital exceeds the marginal cost of producing it.
2. as long as the present value to the owner of
the earnings from the capital is positive.
3. as long as the market price of the capital is
equal to or greater than the marginal cost of producing it.
4. in all of the above cases.
Choose the correct option.