The rate of interest is the price at which money is borrowed and loaned.
Answer the following statement true (T) or false (F)
True
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If the firm learns that the complicated technology can be made more stable with a few tweaks increasing the cost by 5.5million and increasing the probability of a launch to 50%. Is it worth for the firm to invest the $500,000 in tweaks?
a. No, because it decreases the total expected value b. Yes, because it increases expected value c. No, because it increases risk d. Yes, because tweaking is good
A local video store estimates its average customer's demand per year is Q = 20 ? 4P, and it knows the marginal cost of each rental is $1.00. How much should the store charge for an annual membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy?
A. $40 B. $64 C. $32 D. $20
If a good is normal, its
A. Cross-price elasticity is positive. B. Income elasticity of demand is positive. C. Price elasticity of demand is positive. D. Income elasticity of demand is negative.
Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, the lowest opportunity cost for combs in terms of brushes is
A. 0.33 brush per comb. B. 10 brushes per comb. C. 2 brushes per comb. D. 8.5 brushes per comb.