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
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