The relationship between the marginal product of capital (MPK),the product price (P),and marginal revenue product of capital (MRP_K)in a perfectly competitive market is

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the marginal revenue product of a factor (in this case, capital) is equal to the product price (P) multiplied by the marginal product of the factor (in this case, capital). Therefore, the relationship between the MPK, P, and MRP_K is MRP_K = P × MP_K, which is choice D.

The Relationship Between the Marginal Product of Capital (MPK),the Product