screen. Instructions: Enter your responses as whole numbers. a. Make a table showing the value of marginal product for each screen from the first through the fifth. What property is illustrated by the behavior of marginal products? Negative returns to capital Increasing returns to capital Diminishing returns to capital (9) b. How many screens will be built if the real interest rate is 5.5 percent? square (4) screen(s) c. How many screens will be built if the real interest rate is 7.5 percent? square (x) screen(s) d. How many screens will be built if the real interest rate is 10 percent? square (x) screen(s) e. If the real interest rate is 5.5 percent, what is the highest construction cost per screen that would make a five-screen complex profitable? 45,000

## Step 1: Create a Table of Marginal Product Values### The table is already provided in the image description. It shows the value of the marginal product for each screen from the first through the fifth as follows:- 1 screen: 90,000- 3 screens: 60,000- 5 screens: 120,000 \times 0.055 = \ .- Compare this with the marginal products: - 1 screen: - 2 screens: - 3 screens: - 4 screens: - 5 screens: - All five screens are profitable.### b. Real interest rate = 7.5%- The cost of capital per screen is 9,000 120,000 > 9,000 90,000 > 9,000 75,000 > 9,000 60,000 > 9,000 45,000 > 9,000 120,000 \times 0.10 = \ .- Compare this with the marginal products: - 1 screen: - 2 screens: - 3 screens: - 4 screens: - 5 screens: - Only four screens are profitable.## Step 4: Determine the Highest Construction Cost Per Screen for Profitability at 5.5% Interest Rate### At a 5.5% interest rate, the highest construction cost per screen that would make a five-screen complex profitable is equal to the marginal product of the fifth screen, which is $45,000.