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 we know that the firm is hiring five units of capital, then the rental rate of capital is greater than _____ and less than or equal to:

A) $14; $20.
B) $12; $14.
C) $8; $10.
D) $6; $8.

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 we know that the firm is hiring five units of capital, then the rental rate of capital is greater than _____ and less than or equal to:
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 we know that the firm is hiring five units of capital, then the rental rate of capital is greater than _____ and less than or equal to: A) $14; $20. B) $12; $14. C) $8; $10. D) $6; $8.

A) $14; $20. 
B) $12; $14. 
C) $8; $10. 
D) $6; $8.

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 we know that the firm is hiring five units of capital, then the rental rate of capital is greater than _____ and less than or equal to:

A) $14; $20. 
B) $12; $14. 
C) $8; $10. 
D) $6; $8.