When a Firm Owns Its Capital

question 135

Multiple Choice

When a firm owns its capital,

• A)depreciation is the only capital cost.
• B)the marginal product of capital must be zero.
• C)it still pays an implicit rent.
• D)firms that must rent capital cannot compete.
• E)the capital is considered free.

---

Definitions:

Behavioral

Pertaining to the ways in which behavior is learned, exhibited, and modified in response to the environment.

Ruminating Inwardly

The process of continuously thinking about the same thoughts, often negative, which can exacerbate feelings of depression or anxiety.

Blood Flow

The movement of blood through the circulatory system, delivering oxygen and nutrients to the body while removing waste products.

Amygdala

A small almond-shaped set of neurons located deep within the brain's temporal lobe, involved in processing emotions such as fear, anger, and pleasure.