The amount that must be paid to an individual to get them to invest in the industry is
A) a normal rate of return.
B) the explicit costs.
C) reinvestment.
D) financial capital.
Answer: A
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A business incurs the following costs per unit: Labor - $5/unit; Materials $3/unit and rent - $5000/month. If the firm produces 100 . units a month, the total variable costs equals
a. $5,000 b. $8,000 c. $13,000 d. $10,000
A decrease in the government's budget deficit will
a. increase the supply of loanable funds, lower the interest rate, and increase investment spending b. reduce the supply of loanable funds, raise the interest rate, and reduce investment c. increase the demand for loanable funds, raise the interest rate, and reduce investment spending d. reduce the demand for loanable funds, lower the interest rate, and increase investment spending e. increase the supply of loanable funds, reduce the demand for loanable funds, leave the interest rate unchanged, and increase investment spending