If the Cost of Using an Additional Unit of Capital

question 15

Multiple Choice

If the cost of using an additional unit of capital equipment is $5,000 and the marginal product of a unit of capital is 2,000 units of output, this means that for each additional dollar spent on capital, there is a gain of _________ units of output.

• A)5
• B)0.4
• C)2.5
• D)2

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