The marginal product of capital indicates_________. Therefore the MPK curve is also _________. A....

Question:

The marginal product of capital indicates _____. Therefore the MPK curve is also _____.

A. the quantity of capital supplied for a given rental price; the equilibrium price of capital

B. The quantity of capital demanded for a given rental price; the demand curve of capital

C. the quantity of capital demanded for a given rental price; the equilibrium price of capital

D. The quantity of capital supplied for a given rental price; the supply curve of capital

E. none of the above

Capital:

Capital generally refers to the fixed assets used in the production process. It may include plant and machinery, electronic items, and other resources apart from raw material, labor and technology. Use of capital during production improves the efficiency of the workers.

Answer and Explanation: 1

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The correct option is B. The quantity of capital demanded for a given rental price; the demand curve of capital

Explanation:

The marginal product...

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What Is Capital? - Definition & Concept

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Chapter 1 / Lesson 22
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What does capital mean? Learn the definition and meaning of capital. See examples of capital. Know and understand types of capital and how capital differs from money.


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