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The price of a unit of capital is 2 comma 000. The rate of depreciation​ is: 20​% per year. The annual real rate of interest​ is: 7​% What is the user cost of​ capital?

Respuesta :

lazicah

Answer:

Unit price = 2,000

User cost of capital is this

c = r + d

c = (7% of 2000) + (20% of 2000)

c = 140 + 400 = 540

Explanation:

The real rate of interest, r = user cost of capital, c - rate of depreciation, d

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