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Get access to the detailed solutions to the previous years questions asked in IIFT exam
We have seen above that the marginal efficiency of capital depends, not only on the existing abundance or scarcity of capital-goods and the current cost of production of capital- goods, but also on current expectations as to the future yield of capital-goods - From these lines, options A, B and C can be inferred.
Availability of capital is nowhere mentioned as a factor on which marginal efficiency depends.
Hence, option D is the correct answer.