Which One of the Following Statements About the Implicit Rental

question 89

Multiple Choice

Which one of the following statements about the implicit rental rate of capital is true?

• A)It is the market value of capital.
• B)It is the opportunity cost to a firm of using its own capital.
• C)It includes normal profit.
• D)It is the amount paid for the use of land or buildings.
• E)It is the depreciated value of capital.

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Definitions:

Duration

The time period for which something lasts or is intended to last.

Notice to Terminate

A formal notification, often in writing, informing one party of the other party's intention to end an agreement or contract at a specified time.

License

A permit or authorization granted by an authority to engage in a particular activity or to use a particular property.

Revocation

The act of officially cancelling or withdrawing something, such as a law, license, privilege, or promise.