D Question 1 1 pts 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 03 04 05 A household has a wealth endowment of $5 and can use this to either consume (C) or save (S). Consumption generates MB of $1.89, 1.51, 1.28, 1.19 & 1.11 from the 1st, 2nd,... dollar allocated to consumption, respectively. If the current interest rate in the market is 31%, then to maximize the total payoff from C and S, it is optimal for the household to choose C =________ and S OC=1; S = 4 OC=2; S = 3 OC = 3:5=2 OC = 4; S = 1