When Capital Depreciation Is Included in the Arbitrage Equation for Capital

question 49

Multiple Choice

When capital depreciation is included in the arbitrage equation for capital, the user cost of capital is given by:

• A) \(M P K + R + \bar { d }\)
• B) \(R \cdot \bar { d } \div M P K\)
• C) \(R + \bar { d } - \left( \Delta p _ { k } / p _ { k } \right)\)
• D) \(R + \bar { d } - M P K\)
• E) \(\bar { d } + \Delta p _ { s }\)