Markovich Corporation is considering building a new plant. It will cost $1 million today to build it and it will generate revenues of $1.121 million three years from today. Of the interest rates below, which is the highest interest rate at which Markovich still would be willing to build the plant?
a. 3 percent
b. 3.5 percent
c. 4 percent
d. 4.5 percent
b
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In the long run, constant returns to scale necessarily occur when the firm increases its production and the firm's
A) total cost increases. B) total cost does not change. C) average total cost increases . D) average total cost does not change. E) production increases by more than does the firm's total cost.
When the reservation wage is adjusted to account for a higher inflation rate:
a. the aggregate demand curve shifts to the right. b. the price level falls. c. the short-run Phillips curve shifts outward. d. production costs of businesses decline. e. the aggregate supply curve shifts to the right.
(Exhibit: IS-LM Monetary Policy) Based on the graph, starting from equilibrium at interest rate r1 and income Y1, an increase in the money supply would generate the new equilibrium combination of interest rate and income:
What will be an ideal response?
For each of the following pairs of products, state which are complements, which are substitutes, and which are unrelated
a. Swim fins and scuba tanks b. Coca Cola and Volkswagens c. Printers and ink cartridges d. Ice and ice chests e. Heineken and Corona