Question

Why are payments for capital goods not in themselves factor payments? Do earned depreciation charges constitute factor incomes? Explain. 

   Why are payments for capital goods not in themselves factor payments? Do earned depreciation charges constitute factor incomes? Explain.
Intermediate Microeconomics
Intermediate Microeconomics
Robert W. Clower,… 1st Edition
Chapter 15, Problem 16 ↓

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Factor payments are the incomes earned by the factors of production, which include land, labor, capital, and entrepreneurship, for their contributions to the production process. These payments typically take the form of rent (for land), wages (for labor), interest  Show more…

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Why are payments for capital goods not in themselves factor payments? Do earned depreciation charges constitute factor incomes? Explain.
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