As it relates to the R&D decision, the interest-rate cost-of-funds curve:
A. usually slopes downward.
B. is the marginal cost element in the MB = MC decision framework.
C. indicates a constant rate of return, r.
D. reflects the interest rate on bank loans but not the implicit interest rate on the use of
retained earnings.
Answer: B
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If Big City Electronics is in tacit collusion with two smaller electronics firms and Big City Electronics consistently makes price changes that the other two firms then also make, this is an example of ________ by Big City Electronics.
A) a precommitment B) price leadership C) a meet-or-release clause D) a meet-the-competition clause
Assuming a market rate of interest equal to 7 percent, what is the present value of $200 to be received one year from today?
A) $123 B) $156 C) $187 D) $210
The composition of M2 as of December 2010 includes saving deposits at savings banks and credit unions
a. True b. False Indicate whether the statement is true or false
Suppose that Tom bought a bike from Helen for $195. If Helen's reservation price was $185, and Tom's reservation price was $215, the total economic surplus from this transaction was:
A. $215 B. $195 C. $185 D. $30