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If the capital stock is fixed and something happens to raise the marginal product of capital for any given quantity of capital, then the real rental price of capital will:

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User Aquatoad
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Answer: B) rise

Step-by-step explanation:

The real rental price of capital refers to the cost of borrowing capital which is the interest payment on the capital less the capital gains made. As a result it is equal to the marginal product of capital which shows how much extra, a unit of capital enables the entity to produce.

Therefore, if marginal product of capital rises, as is the case in the question, so will the real rental price of capital.

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