The implicit rate of return that must be paid to induce investors to continue to supply the funds necessary to maintain a firm's capital assets is called
a. the investors' rate of return.
b. the opportunity cost of labor.
c. the opportunity cost of capital.
d. equity capital.
C
You might also like to view...
Everything else held constant, an increase in the required reserve ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
Markets with hit-and-run entry and exit experience
A) barriers to entry. B) firms entering whenever they can make a profit and exiting when they cannot make a profit. C) steady long-run economic profit. D) a very steady number of firms.
People:
A. always have access to complete information. B. rarely have access to complete information. C. never have access to complete information. D. often have access to complete information.
What does Says’ law state?
a. Supply creates its own demand. b. Demand creates its own supply. c. Supply and demand always intersect. d. Government determines supply and demand.