When the marginal rate of return expected from a purchase of equipment is less than the market interest rate, then the firm should
a. seek government assistance in decreasing the market interest rate
b. inform stockholders that the company can expect increased earnings from the purchase
c. either purchase or not purchase the equipment depending on the marginal resource cost of the equipment
d. purchase the equipment
e. not purchase the equipment
E
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The market for unskilled labor is illustrated in the figure above. The market is in equilibrium and then a minimum wage of $3 per hour is imposed. Employment will decrease by
A) 0 hours. B) 10 million hours per year. C) 20 million hours per year. D) 30 million hours per year.
A country possesses a comparative advantage in the production of a good if
A) the opportunity cost in terms of forgone output of alternative goods is lower for this country than it is for its trading partners. B) it possesses an absolute advantage in the production of this good. C) it is able to produce more of this good per hour than can any other country. D) all of the above.
The accountant's cost of producing a bicycle refers to
a. the out-of-pocket payments made to produce the bicycle. b. the value of the goods that were given up to produce the bicycle. c. the bicycle's retail price. d. the marginal cost of the last bicycle produced.
The selling of a good or service abroad at a price below production costs is
A. price discrimination. B. price differentiation. C. dumping. D. marginal cost selling.