A Firm Renting Out Capital Does Not Bear as Cost

question 105

Multiple Choice

A firm renting out capital does not bear as cost the:

• A)lost interest it could have earned by depositing the purchase price of the capital in a bank.
• B)wear and tear on the capital.
• C)wages of the labour that works with the capital.
• D)capital loss or gain in the asset's value.

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Definitions:

Eye

The organ of vision that detects light and sends signals through the optic nerve to the brain.

Brain

The central organ of the nervous system, located in the skull, responsible for controlling most functions of the body and mind.

Taste Sensations

The perception of taste categorized mainly into five basic tastes: sweetness, sourness, saltiness, bitterness, and umami.

Optic Nerve

A cranial nerve that transmits visual signals from the retina to the brain.