Multiple Choice

-In Exhibit Q-2, if price of the good is $5, the price of a unit of the physical capital used inproduction (shown in column 1) is $450, and the interest rate on loanable funds is 10percent, then the quantity demanded of physical capital is
A) 2 units
B) 3 units
C) 4 units
D) 5 units
E) 6 units
Correct Answer:
Verified
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