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miss 7 - <1<J<J®®®O©E>l>l>...

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Unformatted text preview: <1<J<J®®®O©E>l>l> Exercises-cure: [II of 1 pt AssignmntE-mre: 63.3% {9.5 of 15 pt: Reati the news clip anti then answer the following question. Detroit Di} Ref a Rising gasoline prices a firm‘s riemanci for Marathon Di] Sat g... refineries and the implicit rental rate of refineries. expansion of its g _ sairi the company a {jar-t. tiecrease; lower arid 135 PM refinery. iii-B. (increase; {lo not change -::_'::- I2. increase; do not change .1!" D. increase; raise it! ® Nice Work! A firm‘s demanrl for refineries is rierived from the 1value ofmarginal product of capital. The 1value of marginal prochlct ofcapital is equal to the price ofthe output multiplieci by the marginal prorluct ofcapita]. 1When gasoline prices rise: the value of marginal pro-cinct ofcapital increases= and demami increases. When tiemanti increases, the (lemami curve shifts rightwarri anti the implicit rental rent of refineries increases. ...
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