Asked by
LGmashups - Lily Gilbert
on Dec 17, 2024Verified
The demand curve for capital
A) is vertical.
B) is horizontal.
C) is derived from households' decisions concerning saving and spending.
D) reflects the marginal productivity of capital.
Demand Curve
A graph showing the relationship between the price of a good and the quantity of that good consumers are willing to buy.
Capital Market
The capital market is a financial market where long-term debt or equity-backed securities are bought and sold, providing businesses and governments with a platform to raise funds for long-term investments.
Marginal Productivity
The additional output that is produced by utilizing one more unit of a variable input, holding all other inputs constant.
- Grasp the concept of the demand curve for capital and how it reflects the marginal productivity of capital.
Verified Answer
VB
Learning Objectives
- Grasp the concept of the demand curve for capital and how it reflects the marginal productivity of capital.