Figure 18-1
-Refer to Figure 18-1.Suppose the intersection of the supply and demand curves matches with a value of $200 on the vertical axis.Then

Question

Figure 18-1 
-Refer to Figure 18-1.Suppose the intersection of the supply and demand curves matches with a value of $200 on the vertical axis.Then

Quizplus · Accepted Answer

The intersection of the supply and demand curves indicates the equilibrium point in the market, where the quantity of capital supplied matches the quantity demanded. At this point, the value of the marginal product of capital is equal to the price of capital, which is $200 in this case. Therefore, choice B is correct. A is incorrect because the marginal product of capital is a measure of the additional output that can be produced by adding one unit of capital, and is not necessarily equal to the price of capital. C is incorrect because the price of capital is $200, but it does not indicate that a unit of capital can be purchased for that price. D is incorrect because the equilibrium price of capital in the capital goods market does not necessarily determine the wages of workers in that market.

Figure 18-1 -Refer to Figure 18-1.Suppose the Intersection of the Supply and the Supply