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Use Table: Derived Demand for Capital

Question 38

Multiple Choice

Use Table: Derived Demand for Capital. The table lists the units of capital and the marginal revenue product per hour that are generated by each unit for a firm in a perfectly competitive market. If the marginal product of the fourth unit of capital is 5, then we can conclude that the price of the good is:
Use Table: Derived Demand for Capital. The table lists the units of capital and the marginal revenue product per hour that are generated by each unit for a firm in a perfectly competitive market. If the marginal product of the fourth unit of capital is 5, then we can conclude that the price of the good is: A) $2. B) $3. C) $4. D) $5.


A) $2.
B) $3.
C) $4.
D) $5.

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