Use Table: Derived Demand for Capital. The table lists the units of capital and the marginal revenue product per hour that are generated by each unit for a firm in a perfectly competitive market. If the marginal product of the fourth unit of capital is 5, then we can conclude that the price of the good is:

A) $2.
B) $3.
C) $4.
D) $5.

Question

Use Table: Derived Demand for Capital. The table lists the units of capital and the marginal revenue product per hour that are generated by each unit for a firm in a perfectly competitive market. If the marginal product of the fourth unit of capital is 5, then we can conclude that the price of the good is:
Use Table: Derived Demand for Capital. The table lists the units of capital and the marginal revenue product per hour that are generated by each unit for a firm in a perfectly competitive market. If the marginal product of the fourth unit of capital is 5, then we can conclude that the price of the good is: A) $2. B) $3. C) $4. D) $5.

A) $2. 
B) $3. 
C) $4. 
D) $5.

Quizplus · Accepted Answer

The Answer of Use Table: Derived Demand for Capital. The table lists the units of capital and the marginal revenue product per hour that are generated by each unit for a firm in a perfectly competitive market. If the marginal product of the fourth unit of capital is 5, then we can conclude that the price of the good is:

A) $2. 
B) $3. 
C) $4. 
D) $5.