The market interest rate
a. represents the opportunity cost of investing with borrowed funds
b. has no impact on the firm's investment decision if the firm uses borrowed funds
c. represents the opportunity cost of investing with savings
d. has no impact on the firm's investment decision if the firm uses savings
e. represents the opportunity cost of investing with either borrowed funds or savings
E
You might also like to view...
Teenage workforce participation as a percentage of the total workforce has fallen in the United States in recent years.
Answer the following statement true (T) or false (F)
Although digital storage costs have declined sharply in the past few years, many universities and companies still have limited storage space for email messages and impose a fixed limit on the amount of file storage space per user
May we view this as a common property resource problem, and do the fixed limits resolve the problem? A) Yes, the storage space used by one person is not available to another person, and the storage limit is a type of quota that allocates the property rights to the storage space. B) Yes, the storage space used by one person is not available to another person, and the storage limit represents a form of single-person ownership that resolves the common property resource problem. C) No, one person's use of the storage space does not have an impact on other people, so this is not a common property resource problem. D) This is an example of a common property resource problem, but the fixed limits on storage space do not resolve the problem.
The rental price of capital is
a. determined outside the realm of factor markets. b. the price paid to use capital for a limited time period. c. the price paid for ownership of the capital. d. always more than the purchase price.
The extra cost associated with undertaking an activity is called
A) net loss. B) marginal cost. C) opportunity cost. D) foregone cost.