contestada

The user cost of capital is given by the following formula, where p K is
the real price of capital goods, d is the depreciation rate, and r is the
expected real interest rate:
a. uc = (r + d)/p K
b. uc = p K/(r + d)
c. uc = d p K/r
d. uc = (r + d)p K

Q&A Education