The expected real cost to a firm of using an additional unit of capital during a period of time is the
A) user cost of capital.
B) marginal product of capital.
C) marginal cost of capital.
D) opportunity cost of capital.

Question

Quizplus · Accepted Answer

The expected real cost to a firm of using an additional unit of capital is referred to as the "user cost of capital," which includes depreciation and the opportunity cost of the funds used to purchase the capital.

The Expected Real Cost to a Firm of Using an Additional