Author Question: All of the following are examples of explicit cost a firm might incur except A) taxes owed to the ... (Read 87 times)

armygirl

  • Hero Member
  • *****
  • Posts: 556
All of the following are examples of explicit cost a firm might incur except
 
  A) taxes owed to the state government.
  B) the revenue a firm generates in using its resources.
  C) the rental value of the warehouse space the company owns and uses for itself.
  D) the out-of-pocket expense to hire employees.

Question 2

What determines demand and supply in rental markets for capital and land?
 
  What will be an ideal response?



flannelavenger

  • Sr. Member
  • ****
  • Posts: 322
Answer to Question 1

C

Answer to Question 2

The demand for capital depends on the value of marginal product of capital; the demand for land depends on the value of marginal product of land. The higher the marginal product of capital or land, the greater the demand for capital or land. Additionally the demand for capital depends on the rental rate of capital and the demand for land depends on the rental rate of land. The higher the rental rates, the lower the quantities demanded. The supply of capital depends on the rental rate of capital. The higher the rental rate of capital, the greater is the quantity of capital supplied. The supply of land, however, is perfectly inelastic because its quantity is fixed.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

For a complete list of videos, visit our video library