A firm is considering an investment that will earn a 6% rate of return. If it were to borrow the money, it would have to pay 8% interest on the loan, but it currently has the cash, so it will not need to borrow. Should the firm make the investment?

Q: Under negative returns to a factor, MP remains positive True/False

A: # The negative returns to a factor states that if the firm keeps on engaging more units of the labor…

Q: Using the midpoint basis, and expressing the answer in fraction or integer format, calculate the…

A: Mid-point method Percentage change in price = [(P2 - P1) / ((P2 + P1)/2)]

Q: A motor vehicle

A: The diminishing return is also known as the law of diminishing returns. It states that an increase…

Q: Rashid is studying Masters Degree in Sultan Qaboos University, Muscat. His research topic is "The…

A: Research is the process of creative and systematic study using the collection of data and…

Q: A fast food restaurant can produce a hamburger for $1.15. If the restaurant's daily sales are…

A: Given that, The increasing rate of Hamburgers = 30/day Cost of one Hamburgers = $1.15 The daily cost…

Q: Employee Satisfaction SegiTech is a Malaysian technology company headquartered in Shah Alam,…

A: An organization is a platform for individuals where they interact and serve their services to…

Q: Calculate the value of output if sales are $13000 million and change in stock is $8800

A: The information being given is:- Sales = $13,000 million Change in stock = $8800 million We have to…

Q: Who, in your opinion is the most influential and important entrepreneur of the last 10 years and…

A: An entrepreneur is a person that develops a business by taking a financial risk in return for…

Q: Discuss how the concepts of price elasticity of demand and production costs can help firms set their…

A: price elasticity of demand is proportionate change in the demand of commodity/ service due to…

Q: During short period, diminishing returns may follow because

A: To find : What results in following diminishing results.

Q: A manager checked production records and found that a worker produced 225 units while working 50…

A: Productivity is a measure of economic performance that compares the amount of goods and services…

Q: 2. A company's production output P is given in tons, and is a function of the number of workers N…

A: Given, P(N,V) = 5N3/4V1/4 or it can be written as P(N,V) = 5N0.75V0.25 a) Workers = 80, so N = 80…

Q: The economic characteristics of agricultural land which makes it a long term investment is it

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: You purchased a piece of property at $450,000 six years ago. You can sell theproperty at $650,000.…

A: The annual rate of return can be calculated by using the formula given below:

Q: Difference between short and long run energy demand.

A: The responsiveness of a goods supply or demand to a change in price is measured by price elasticity.…

Q: explain wheather or not you agree with the following statement" A company has R500 million in a…

A: Economic capital could be a measure of risk in terms of capital. more specifically, it is the amount…

Q: needs to produce 500 cups of coffee and the price of capital is 40 euro per unit and the price of…

A: A production function gives the technological relation between quantities of physical inputs and…

Q: The discount rate is the interest rate that

A: Correct option is (3).

Q: What rule does the representative firm follow in determining its optimal level of investment? The…

A: Dear learner you have posted multiple questions, as per our policy we have solved only first…

Q: A man is considering investing P500.000 open a semi.

A:

Q: 20) Economic profits a) are equal to total revenue minus fixed costs b) are equal to the direct…

A: Economic profits refer to the amount a firm receives after the deduction of explicit and implicit…

Q: A motor vehicle assembly plant requires the use of both capital and labour. The Tesla manufacturing…

A: According to the law of diminishing returns when more units of variable input are used with a fixed…

Q: If a person owns a house that is worth 450,000 in city A, what would the same house cost in city E…

A:

Q: Define the term the cost of capital?

A: The cost of capital is a very important term for the term for investors and a company which is the…

Q: A consumer price index of 160 in 1996 with a base year of 1982-1984 would mean that the cost of the…

A: The general increase in the price level is known as the inflation. Consumer price index (CPI) is a…

Q: A use value appears as a raw material, means of work or product and this depends on the function…

A: In the labour process, man's action causes an alteration in the material being worked on, which was…

Q: A motor vehicle assembly plant requires the use of both capital and labor. The Tesla manufacturing…

A: Diminishing returns means the stage of production where, the returns(marginal) from the use of labor…

Q: Closing stock in an economy is $5000 and opening stock is $3300 Calculate change in stock

A: According to the above given question, we have:- Closing stock = $5000 Opening stock = $3300 We have…

Q: A motor vehicle assembly plant requires the use of both capital and labour.The Tesla manufacturing…

A: Diminishing returns are important principle of microeconomic analysis in case of consumption as well…

Q: How did you arrive at the new unit productivity percentage of 17.75?

A: Introduction The productivity of a production system is similar to the efficiency of the production…

Q: Henry takes put a home-equity loan for $50,000. He deposits the loan proceeds into an account used…

A: Second mortgages are a type of consumer financing similar to a home equity loan. Homeowners can…

Q: what specific cost is the normal rate of return to a company?

A: Total fixed cost is the cost that is fixed and remains the same over a period of time. The total…

Q: True/False Increase in total product always indicates that there are increasing returns to a…

A: # An idea of the total output which a firm is able to produce is reffered to be as total product.…

Q: The law of diminishing returns states that if increasing quantities of a variable factor are applied…

A: The law of diminishing returns is also known as the law of non proportional return and a law of…

Q: Consider yourself an owner/manager of a food franchise business. In what situation or circumstances,…

A: Capital budgeting entails selecting projects that increase a company's worth. The capital budgeting…

Q: fixed and flex ex rates and which should be better?

A: When we have to buy the goods or services of another country, we first have to buy the currency of…

Q: never

A: When optimal capacity of a firm is reached, then applying additional unit of labour to production…

Q: Determining the Payments to Capital and Land by using suitable examples.

A: The functional relationship between the factors of production (inputs) and output is shown by the…

Q: Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per…

A: Opportunity cost is the cost of next best alternative available to the consumer or it is the cost of…

Q: A motor vehicle assembly plant requires the use of both capital and labour. The Tesla manufacturīng…

A: The Law of diminishing returns states that if one additional unit of input is added in the firms'…

Q: Suppose that the economy is made up of a single firm, which pays $500 in interest payments, pays…

A: Given the expenditures: Interest payment = $500 Labour costs = $500 Rent of building = $1000

Q: An engineer told you that a project is economically acceptable when it’s rate of return equals or…

A: The cost (C&B) benefit analysis is an important evaluation tool to judge the economic viability…

Q: How can a programmer profit from the ability to learn new languages, even if they are already…

A: A programming language is a type of  computor language which is written and tells computers what to…

Q: Many people hire a local. The rent must be paid in advance on the last of each month. Due to…

A: A liquidity crisis occurs when an otherwise solvent firm lacks the liquid assets—cash or other…