If the interest rate is 1 percent and a business pays $100,000 for a lease on a factory, the explicit costs are

A) $110,000.
B) $100,000.
C) $10,000.
D) $90,000.


Answer: C

Economics

You might also like to view...

A machine cost $15,000 to install, and has a resale value one year later of $12,000. If the real interest rate is 10%, then the user cost of capital is ________

A) $4,500 B) $1,500 C) $3,000 D) $1,200

Economics

A tax on buyers will shift the

a. demand curve upward by the amount of the tax. b. demand curve downward by the amount of the tax. c. supply curve upward by the amount of the tax. d. supply curve downward by the amount of the tax.

Economics

When all market participants are price takers who have no influence over prices, the markets have

a. only a few buyers and sellers. b. numerous sellers but only a few buyers. c. numerous buyers but only a few sellers. d. numerous buyers and sellers.

Economics

The basic task of economics is to

What will be an ideal response?

Economics