Question: use the first question to answer the second one Consider a firm that uses capital, K, to invest in a project that generates revenue and

use the first question to answer the second one

Consider a firm that uses capital, K, to invest in a project that generates revenue and the MR from the 1st, 2nd, 3rd, 4th & 5th unit of K is $1.75, 1.48, 1.26, 1.18 and 1.13. respectively. (This is just MR table, as in the notes). If the interest rate is 21%, then the optimal K for the firm to borrow is 02 3 05 question 5 1 pts Consider the MR table for the firm in question 1. Say that this firm faces an interest rate of 28% and then borrows the optimal amount of capital. What is the total revenue that the firm will earn? 3.23 4.49 5.67 6.8

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