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.

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Definitions:

Diabetic Ketoacidosis

A complication of diabetes that occurs when the body cannot use sugar (glucose) as a fuel source because the body has no insulin or not enough insulin and fat is used instead. Byproducts of fat breakdown, called ketones, build up in the body.

Hyperglycemia

Increase of blood sugar, as in diabetes.

Fruity Odor

A smell often described as sweet and reminiscent of various fruits, sometimes indicative of medical conditions like diabetic ketoacidosis.

Excessive Cold

A condition characterized by temperatures significantly below what is considered comfortable or safe for humans.