The Annual Rental Rate for a Machine Is

question 4

Multiple Choice

The annual rental rate for a machine is

• A)the yearly depreciation and maintenance costs for the machine.
• B)the yearly interest costs associated with owning the machine.
• C)the initial purchase price of the machine divided by the number of years the machine is expected to last.
• D)the sum of the yearly depreciation,maintenance,and interest costs associated with owning the machine.

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Definitions:

Benefits

Advantages or positive outcomes that result from a particular action or policy.

Cap-And-Trade

An environmental policy tool that sets a limit on emissions and allows companies to trade allowances for emissions as a way to reduce pollutants.

Pollutant Permits

Government-issued licenses allowing the holder to emit a certain amount of pollution; they can be bought and sold, creating an economic incentive for reducing emissions.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually do pay.