Marginal efficiency of capital

The marginal efficiency of capital (MEC) refers to the expected rate of return on investment in new capital goods, such as machinery, buildings, or equipment. It is the additional income generated from an additional unit of capital, adjusted for the cost of that capital. In simpler terms, it shows how much profit or output a business can expect to earn from investing in new ___ ________ __________ _____ _______ _____.
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