Business, 22.02.2020 01:21 swelch2010

When considering the purchase of a large central system, such as power generation or computer networks, firms have to decide how big a system to acquire and whether, and, if so, how to charge the users for it after the purchase. Which is true?

a. If the firm charges depreciation to the users, the likely consequence is that the firm acquires less capacity than needed
b. If the firm charges users depreciation only, the likely consequence is that demand for resources equals capacity
c. If the firm charges nothing to the users, the likely consequence is that the firm will likely acquire more capacity than needed
d. If the firm charges the users the full cost, the likely consequence is demand for resources equals capacity

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When considering the purchase of a large central system, such as power generation or computer networ...