Figure 18-11
-Refer to Figure 18-11. 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.

Question

Figure 18-11 
-Refer to Figure 18-11. 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.

Quizplus · Accepted Answer

The intersection of the supply and demand curves at $200 on the vertical axis indicates the value of the marginal product of capital, which is the additional revenue generated from using one more unit of capital.

Figure 18-11 -Refer to Figure 18-11. Suppose the Intersection of the Supply