=+We have just concluded that MPk 5 r/p at the profit-maximizing bundle. another way to write this

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=+We have just concluded that MPk 5 r/p at the profit-maximizing bundle. another way to write this is that the marginal revenue product of capital MRPk 5 pMPk is equal to the rental rate. Can you explain intuitively why this makes sense?

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Microeconomics An Intuitive Approach With Calculus

ISBN: 9781337335652,9781337027632

2nd Edition

Authors: Thomas Nechyba

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Question Posted: Nov 04, 2024 09:00 AM

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Microeconomics An Intuitive Approach With Calculus

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