The marginal product of capital can differ in the short-run from the user cost of capital because: a. the MPK depends on how sensitive firms are to changes in the economy. b. installing new capital takes time to equalize the MPK and the user cost of capital. c. the MPK and the user cost of capital are always equal to each other. d. the MPK is exogenous while the user cost of capital is endogenous.

Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.