Calculate rental price of capital, Macroeconomics

Let the real interest rate, ir, equal 5 percent and the rate of depreciation, d, equal 10 percent.  In this case, if the price of a piece of capital is PK = $10,000, what is the rental price of capital, RK?

 

Posted Date: 2/21/2013 8:13:43 AM | Location : United States







Related Discussions:- Calculate rental price of capital, Assignment Help, Ask Question on Calculate rental price of capital, Get Answer, Expert's Help, Calculate rental price of capital Discussions

Write discussion on Calculate rental price of capital
Your posts are moderated
Related Questions
constructing a opportunity set and budget line for $15 lottery ticket and intending on buying a candy bar for $0.75 and peanut bag for $1.50

A significant argument for the augmentation has to do with concept of money illusion. Money illusion means that you care about nominal rather than real amounts. Imagine that your s

1. Consider the market for a particular type of computer memory chip. Would you expect the long-run (own-price) elasticity of supply to be larger or smaller than the short-run elas

how is credit creation by commercial bank

THE AD CURVE SHIFT TO THE LEFT WHEN

A profit maximizing firm has a production function such that: Y=K2L2 a) If P=10,rk=2,andWL=3 , what would be its optimum be? How can you show that it is a maximum? b) How

why is international trade important for South Africa?


What is the difference between heckscher_olin theory and comparative theory

What are the contents in the market strikes back? a. Price controls • Price ceiling • Price floor b. Quantity controls quota c. Excise tax d. Inefficiency