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 (Number of machines) 0 1 Select one: a. 2 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? b. 4 c. 0 d. 1 2 3 4 e. 3 Output (Number of units of output) 0 10 18 24 26 X