The opportunity cost of capital is
A) the rate of return realized on an investment.
B) the rate of return that could be earned by the owner's capital were it used elsewhere.
C) the rate used to calculate a firm's tax liability.
D) the rate of interest the government uses to calculate legal business tax penalties.
B
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There is some misunderstanding of the WTO's provisions for environmental protection in trade. The WTO actually:
a. allows nations to bar all imports from nations that do not conform to their own standards. b. provides that nations may enforce any standards for particular products as long as the standards apply equally to domestic producers and importers. c. does not make any pretense of caring at all about the environment. d. is very inconsistent in its rulings.
In the figure above, an increase in the price of a bag of potato chips would result in the budget line
A) making a parallel shift toward point a. B) making a parallel shift toward point c. C) becoming flatter. D) becoming steeper.