Question

4) Explain hat determine the optimum Level of consumption for an individual consumer? “ The consumer is king” (P. Samuelson). To what extent is this a fair description of the consumer’s power in the market place?

Answer 1

Answer:

ADVERTISEMENTS: The optimum level of capital can be obtained when Marginal Cost of Capital (MCK) is equal to the Marginal Revenue Productivity of Capital (MRPK). MCK refers to the rate of interest in the market.In financial market, MCK is constant and known.