Quick question for you economics gurus...

[Galore]

I know I'll probably get lambasted for this being the incorrect forum, but I didn't see a better place to put it. I was just wondering if someone could define a term for me, "capital rental rate." I have searched for a definition but I just can't seem to find it. I'd appreciate any help.

[Peot]

The rental rate of capital is an implicit cost associated primarily with the notion of opportunity cost. It's essentially the costs incurred by a firm in using its own capital for production instead of, for example, renting it to some other firm.

[Galore]

Originally Posted by Peot

The rental rate of capital is an implicit cost associated primarily with the notion of opportunity cost. It's essentially the costs incurred by a firm in using its own capital for production instead of, for example, renting it to some other firm.

That makes sense. So how would you show this graphically?

If I were to say immigration (in a 2 country model) were to increase from foreign to home, how would that affect the RRoC? And how exactly do you show that graphically?

Thanks for your help.

[Thesus]

We really can't do homework questions here. It's a repeated game, if we ever crack, the board will be flooded with others asking for help.

[Galore]

They aren't homework questions, but I can see how you'd think that. It's just me trying to understand a class and not being able to find substantial information on it.

[ICECOLDECON]

Use answers.yahoo.com They respond pretty quickly and are usually relatively competent. In my spare time, I am on there answering math and econ questions.

[breakz]

Ah, takes me back to international trade.