Describe the Difference Between the Purchase Price of Capital and the Rental

question 105

Essay

Describe the difference between the purchase price of capital and the rental price of capital. If you know the value of marginal product from the flow of capital services, how would you determine the market price for the capital stock?

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Definitions:

Job Design

The process of organizing tasks, duties, and responsibilities into a productive unit of work to enhance job satisfaction and performance.

Job Enlargement

a job design method that increases the number of tasks for a worker to reduce the monotony of work.

Challenging

Invoking a test of one's abilities or resources in a demanding but stimulating manner.

Psychological Empowerment

The extent to which employees feel a sense of personal fulfillment and intent when carrying out tasks, together with a belief that their work contributes to some larger purpose.