the cost of using capital services is the ?
Correct answer: D. rental rate for capital
- A. wage rate of capital
- B. interest charges
- C. marginal capital cost
- D. rental rate for capital
Explanation
The rental rate of capital is the opportunity cost paid for using capital services during a period. Interest charges are one component of this cost, but the rental rate can also include depreciation and other ownership costs.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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