# The equation for the marginal productivity of capital is given by: MPKf = 1.000 -10 K The

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## Question:

The equation for the marginal productivity of capital is given by:

*MPKf* = 1.000 -10 *K*

The price of one unit of capital is 2,000. The depreciation rate is: 55% annually. The real interest rate is 15% per year.

If the level of existing capital *K **t* is equal to 50 units, what is the level of gross investment?

*I **t* = ?

**Related Book For**

## Cost-Benefit Analysis Concepts and Practice

ISBN: 978-1108401296

5th edition

Authors: Anthony E. Boardman, David H. Greenberg, Aidan R. Vining, David L. Weimer