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Author Question: What is the distinction between the price of capital equipment and the rental rate of capital? ... (Read 98 times)

Metfan725

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on: Jun 29, 2018
What is the distinction between the price of capital equipment and the rental rate of capital?
 
  What will be an ideal response?

Question 2

Refer to Figure 9-5. The tariff revenue collected by the government equals
 
  A) 10 million. B) 15 million. C) 19.875 million. D) 35 million.


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jasonq

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The price of a unit of capital is how much must be paid to acquire the piece of capital equipment. The rental rate of capital is the amount that must be paid to use the unit of capital equipment. For instance, the copy machine at the local Quik Print has a price of 10,000 but its services can be rented from the Quik Print for 50 per hour.

Answer to Question 2

B


Metfan725

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

smrtceo

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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