Typically when firms talk about depreciation they are usually referring to the deprecation of physical capital assets. However, how any why might it be possible for there to be deprecation in human capital?
What will be an ideal response?
Just like physical capital human capital can also become obsolete. If a worker studies and trains to improve his human capital then he or she is adding to his or her own human capital stock. Likewise, if workers do not keep up with changes in the labor market by acquiring new skills and knowledge then it is very possible than the human capital that ehy have acquired can decline in value over time.
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Explain why demand for a monopolistically competitive firm's product is more elastic than the demand curve that a monopolist faces
What will be an ideal response?
Brandon Wallace tutors economics students. He finds that when he charges $5 per hour, students demand a total of 30 hours of tutoring per week; however, when he raises his rate to $8 per hour, they demand only 26 hours of tutoring. a . Calculate the
price elasticity of demand for Brandon's tutoring. b. Is demand for Brandon's tutoring price elastic, unit elastic, or price inelastic? Which rate should he charge to maximize his revenue? c. Brandon finds that he can raise his rate to $10 per hour during the week before final exams and students will continue to demand 26 hours of tutoring. Explain why this is so.
If a firm shuts down, its
a. fixed costs remain unchanged. b. revenue will fall to zero. c. short-run variable costs will fall to zero. d. All of the above are correct.
A government subsidy to the producers of a product:
A. reduces product supply. B. increases product supply. C. reduces product demand. D. increases product demand.