If the Cost of Using an Additional Unit of Capital

question 99

Multiple Choice

If the cost of using an additional unit of capital equipment is $1,500 and the marginal product of a unit of capital is 7,500 units of output, this means that for each additional dollar spent on capital, there is a gain of __________ units of output.

• A)0.20
• B)2
• C)0.50
• D)5

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Definitions:

House Ways And Means Committee

The House Ways and Means Committee is a key committee in the United States House of Representatives that is responsible for overseeing taxation, tariffs, and other fiscal policies.

Jurisdiction

The official power to make legal decisions and judgments, often defined by geographic area or specific legal issues.

Taxes

Mandatory financial contributions imposed by governments on individuals and businesses to fund public services and infrastructure.

Senate Watergate Committee

A select committee formed by the United States Senate in 1973 to investigate the Watergate scandal, involving a break-in at the Democratic National Committee headquarters and the subsequent cover-up by the Nixon administration.