Business, 17.06.2020 04:57 mimacapa

The optimal quantity of capital The price of a unit of capital is 1,000. The rate of depreciation is: 20% per year and the annual real rate of interest is: 5% The equation for the expected future marginal product of capital is given as: MPK = 1000 minus 10K

Required:
a. Using the line drawing tool, plot the user cost of capital line.
b. Using the point drawing tool, locate the desired (equilibrium) capital stock.

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The optimal quantity of capital The price of a unit of capital is 1,000. The rate of depreciation is...

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