Tom's Donuts can invest in a new espresso machine that costs $300 and will yield expected profits of $200 each year for two years. What is the present discounted value of the expected profits from this investment if the interest rate is 5%?
A. $185.93
B. $276.64
C. $371.89
D. $380.96
Answer: C
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Average total cost and average variable cost are minimized at the same level of output.
Answer the following statement true (T) or false (F)
Households' ________ limit(s) firms' ability to invest in capital.
A. savings decisions B. supply of land C. investment in stock D. tax liability
When you use your own savings to start a business, you make a profit
A. after the first dollar you earn, because you borrowed no funds to start the business. B. only after you cover the opportunity cost of using your savings to start your business. C. after you earn an amount equal to the savings you used to start the business. D. only after you earn double the amount of money you invested.
Those that lose from an increase in the minimum wage are
A. consumers who pay lower prices for goods. B. all workers. C. those workers who keep their jobs. D. employers.