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The following table shows the investment and output options for an individual business. Employment of labour and technology is assumed to be constant. Capital Stock

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The following table shows the investment and output options for an individual business. Employment of labour and technology is assumed to be constant. Capital Stock Output r9 LJ [Number of machines) (Number of units of output) 0 O 1 10 18 24 26 The business operates in competitive product and factor markets. Its output sells for $5 per unit. The price of a new machine is $200. Machines depreciate at a rate of 3 percent and the real interest rate is 2 percent. How many machines will the business choose to invest in? Select one

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