A firm renting out capital does not bear as cost the:
A)lost interest it could have earned by depositing the purchase price of the capital in a bank.
B)wear and tear on the capital.
C)wages of the labour that works with the capital.
D)capital loss or gain in the asset's value.

Question

Quizplus · Accepted Answer

The wages of the labor that works with the capital are not a cost borne by the firm renting out the capital, as these wages are typically a cost for the firm employing the labor, not the firm renting out the capital.

A Firm Renting Out Capital Does Not Bear as Cost