The equation for the marginal productivity of capital is given by: MPK Superscript f = 1,000 minus 10K The price of a unit of capital is 1 comma 000. The rate of depreciation is: 5% per year. The real rate of interest is: 10% per year. If the existing level of capital Kt is equal to 50 units, what is the level of gross investment?
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The equation for the marginal productivity of capital is given by: MPK Superscript f = 1,000 minus 1...
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