Author Question: If the marginal product of a unit of physical capital is 10 units of output, and the product that ... (Read 45 times)

bobypop · **on:** Jun 29, 2018

If the marginal product of a unit of physical capital is 10 units of output, and the product that the physical capital is used to produce is sold for 5, the value of the marginal product of physical capital equals:

A) 2.
B) 10.
C) 20.
D) 50.

Question 2

Based on the figure above, when the market is unregulated and is in equilibrium, the deadweight loss is

A) 86.25 million per year.
B) 56.25 million per year.
C) 48.75 million per year.
D) 37.50 million per year.
E) zero.