Figure 18-7
-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

Question

Figure 18-7  ​
-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

Quizplus · Accepted Answer

The value of the marginal product of capital is the additional value produced by the last unit of capital employed, which in this context is represented by the intersection of the supply and demand curves at a price of $200. This does not necessarily mean the marginal product itself is 200 units, that a unit of capital costs $200, or that workers earn $200.

Figure 18-7 ​

Figure 18-7