Author Question: If the value of the marginal product of physical capital is 20 and the value of the marginal product ... (Read 27 times)

eruditmonkey@yahoo.com · **on:** Jun 29, 2018

If the value of the marginal product of physical capital is 20 and the value of the marginal product of labor is 5, the highest price that a firm should pay for an additional unit of physical capital is:

A) 4.
B) 5.
C) 20.
D) 100.

Question 2

Using the figure above, suppose a subsidy of 15,000 per student is provided to private colleges. Then, the market equilibrium occurs at a tuition of ________ a year and ________ million students.

A) 10,000; 15
B) 25,000; 15
C) 15,000; 15
D) 15,000; 7.5
E) 20,000; 20