Asked by Marina Carosella on May 16, 2024
Verified
The rental price of capital is the price a person pays to own the capital indefinitely.
Rental Price of Capital
The cost of using capital goods for a specific period, reflecting the opportunity cost of utilizing these assets in production.
- Identify the determinants that affect the capital market, comprising demand, supply, and leasing costs.
Verified Answer
AT
Ahmed TeiceMay 20, 2024
Final Answer :
False
Explanation :
The rental price of capital is the price a person pays to use the capital for a limited period, not to own it indefinitely. Ownership would imply a purchase, not a rental.
Learning Objectives
- Identify the determinants that affect the capital market, comprising demand, supply, and leasing costs.