Graphically illustrate what happens to the rental price of


Question: Graphically illustrate:

a) what happens to the rental price of capital and the marginal product of capital as the stock of capital increases

b) how the change in the marginal product of capital changes the investment demand function. Explain in words how this process will continue until the steady state is reached.

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Microeconomics: Graphically illustrate what happens to the rental price of
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