Refer to the table below. If the discount rate is 6 percent and the cost of the investment is $45,000, what is the net present value of the investment?
The above table shows the future operating profits from an investment. The future operating profits are earned at the end of each of the respective years.
A) -$1,074.48
B) $1,100.56
C) $43,925.52
D) -$44,852.36
A) -$1,074.48
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In the long run, a monopolistically competitive firm ________ make an economic profit and a monopoly ________ make an economic profit
A) can; can B) can; cannot C) cannot; can D) cannot; cannot
If the nominal interest rate is 10% and expected inflation is 5%, the real expected interest rate is
A) 15%. B) -5%. C) 5%. D) 10%.
If supply decreases and demand increases
A) the market clearing price definitely rises, and the equilibrium quantity falls. B) the market clearing price definitely rises, and the equilibrium quantity is indeterminate. C) the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate. D) the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely falls.
In a market economy, what determines whether an entrepreneur will continue in business or terminate the production of a new product?
What will be an ideal response?