Ep. 273 The Austrian Theory of Interest, Current and Future
Bob Murphy Show
00:00
The Marginal Product of Capital in Coconut Harvesting
The marginal product of capital is 20 future coconuts. This is how much the owner of a new machine could rent it out for a single period use, right? So if he's not using it himself, but there's some guy down the street involved in the enterprise of coconut harvesting, he could say, hey, I'll rent you my new machine for one period and I want you to pay me 20 future cocONTS. And that other guy would be willing to do that where that's the most the guy would pay for it because that's how much it would boost his thing. Now when he's looking back at this whole scenario, trying to compute what's the return on
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