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What Is the Marginal Product of Capital Equal To

Question 21

Multiple Choice

What is the marginal product of capital equal to?


A) the increase in capital necessary to generate a one-unit increase in output
B) the incremental cost of employing one more unit of physical or human capital
C) the increase in output obtained from a one-unit increase in capital, holding other factors constant
D) the incremental profit associated with selling one more unit of output

Correct Answer:

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