Asked by
Breanna Williams
on Nov 16, 2024
Verified
Refer to Figure 18-7. Suppose the intersection of the supply and demand curves matches with a value of $200 on the vertical axis. Then
A) the marginal product of capital is 200.
B) the value of the marginal product of capital is $200.
C) a unit of capital can be purchased for $200.
D) each worker in markets that produce capital goods earns a wage of $200.
Marginal Product
The additional output that is produced by using one more unit of a given input.
Vertical Axis
The vertical axis in a graph or chart is the y-axis, representing the quantity or degree of the variable measured.
Capital Market
A financial market in which long-term debt or equity-backed securities are bought and sold, different from the short-term funds seen in the money market.
- Comprehend the idea behind the demand curve for capital and its demonstration of the marginal efficiency of capital.
- Gain an appreciation for how market dynamics affect the marginal productivity of critical resources including land, labor, and capital.
Verified Answer
SK
Learning Objectives
- Comprehend the idea behind the demand curve for capital and its demonstration of the marginal efficiency of capital.
- Gain an appreciation for how market dynamics affect the marginal productivity of critical resources including land, labor, and capital.