The marginal product of capital (MPK)is given by the ________.
A)capital share of income + average output per unit of capital
B)capital share of income - average output per unit of capital
C)capital share of income ÷ average output per unit of capital
D)capital share of income × average output per unit of capital
E)none of the above

Question

Quizplus · Accepted Answer

The marginal product of capital (MPK) is given by the product of capital share of income (the proportion of total income paid to capital) and the average output produced by each unit of capital. Therefore, MPK = capital share of income × average output per unit of capital, which is represented by choice D.

The Marginal Product of Capital (MPK)is Given by the ________