The rental price of capital is
a. determined outside the realm of factor markets.
b. the price paid to use capital for a limited time period.
c. the price paid for ownership of the capital.
d. always more than the purchase price.
b
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According to the Monetarists, the real effect of monetary policy on output is
a. long-lasting and unpredictable. b. predictable and beneficial. c. nonexistent in the short run. d. always less than fiscal policy
How might department stores best protect themselves against the risk of recession?
A) Buy insurance policies that pay off when a recession occurs. B) Stand ready to go out of business if a recession occurs. C) Sell goods that are complements to one another. D) Sell both substitute and complement goods. E) Sell both normal and inferior goods.