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    Microeconomics Study Set 23
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    Exam 7: The Cost of Production
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    If the Capital Market Is Competitive, the User Cost of Capital
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If the Capital Market Is Competitive, the User Cost of Capital

Question 158

Question 158

Multiple Choice

If the capital market is competitive, the user cost of capital equals:


A) the rental rate of capital.
B) the return in that market.
C) the rate of return of investing elsewhere.
D) all of the above.

Correct Answer:

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