Microeconomics,, 16th Canadian Edition

Review

4. The following table shows how the present value of the future

MRPs produced by each unit of capital changes as the firm’s total

capital stock increases.

Units of Capital PV of Future MRPs

100 $10 000

101 9 000

102 8 000

103 7 000

104 6 000

105 5 000

106 4 000

107 3 000