Literal question
Hypothetically, if this establishment were to purchase the assets it uses now, in their current condition, how much would they cost?
Land and buildings
Interviewer instructions
This question is designed to ascertain the market value of the establishment's capital. Data on equipment is the most important. You can ask the manager to estimate the market value if all of the equipment, land and buildings were sold on the open market. If the respondent states that there is no market, ask how much the respondent would be willing to pay for the capital, knowing what it can produce in its current condition. Estimate how much it would cost to buy machinery in the current market which is similar in terms of age and characteristics. This estimate is to give an indication of the capital intensity of the firm. Keep in mind that it is one of the most important questions on the questionnaire.
