The implicit rental rate for capital is
A) a cost that is irrelevant to the business.
B) an opportunity cost.
C) an accounting cost.
D) part of the firm's normal profit.

Name: The implicit rental rate for capital is A) a cost that is irrelevant to the business. B) an opportunity cost. C) an accounting cost. D) part of the firm's normal profit.
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Question

Quizplus · Accepted Answer

The implicit rental rate for capital is considered an opportunity cost because it represents the foregone income from not investing the capital elsewhere.

The Implicit Rental Rate for Capital Is