The cost of using capital is equal to the market rental price as long as:
A. a firm rents all of the capital used in its production process.
B. a firm owns all of the capital used in its production process.
C. the cost of capital is expensed in the year the capital is purchased.
D. a well-functioning rental market for capital exists.
D. a well-functioning rental market for capital exists.
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Which of the following events will increase the quantity demanded of bottled water?
A) a fall in the price of bottled water B) a rise in the price of bottled water C) a rise in the price of a fitness club membership D) a fall in the price of soda E) an increase in the number of buyers of bottled water
Depositors have a strong incentive to show up first to withdraw their funds during a bank crisis because banks operate on a
A) last-in, first-out constraint. B) sequential service constraint. C) double-coincidence of wants constraint. D) everyone-shares-equally constraint.