Figure 18-7 ​

question 202

Multiple Choice

Figure 18-7 ​
-Refer to Figure 18-7. Suppose the intersection of the supply and demand curves matches with a value of $200 on the vertical axis. Then

• A)the marginal product of capital is 200.
• B)the value of the marginal product of capital is $200.
• C)a unit of capital can be purchased for $200.
• D)each worker in markets that produce capital goods earns a wage of $200.

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Definitions:

User Costs

Expenses incurred by consumers or firms for the use of assets, services, or capital, which can affect decisions on consumption or investment.

Price of Resource

The cost associated with acquiring, producing, or utilizing a resource, which may include materials, labor, or capital.

Optimal Extraction Level

The most efficient point at which a resource can be extracted or harvested to balance usage and sustainability over time.

Reduction

The process or result of making something smaller or less in amount, degree, or size, often used in context of costs, prices, or quantities.