To determine an individual profit- maximizing firm's maximum purchase price for a unit of capital it is necessary to

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The individual profit-maximizing firm's maximum purchase price for a unit of capital can be determined by computing the present value of the stream of benefits produced by the unit of capital. This takes into account both the future benefits and the time value of money, which is reflected in the interest rate. Option A is incorrect because computing the rental price of the unit of capital is not sufficient to determine the maximum purchase price. Option B is also incorrect because it only considers the future value of benefits without considering the time value of money. Option C is not directly related to determining the maximum purchase price. Option E is also incorrect as the firm's decision should not solely rely on what competing firms are willing to pay.

To Determine an Individual Profit- Maximizing Firm's Maximum Purchase Price