Answer:
C) a higher real interest rate reduces a borrowing firm's profit and hence its willingness to borrow.
Explanation:
Companies borrow money to leverage their projects, investments or regular business activities. When they borrow money, they do it to earn more money themselves, not just to make a bank or a bondholder earn money. Since the company must repay its loans, the profit it makes using the loans must offset the money it must pay back in interest.
E.g. I borrow $100 for my business and the bank charges me $7 in interest per year, so I must be able to use that money to increase my profit by more than $7 a year.
Answer:
$800
Explanation:
The computation of the saving amount on tax is shown below:
Provided information
Amount is given to the building fund by Judy Hays = $3,200
Marginal tax rate = 25%
By considering the above information, the saving amount on tax would be
= Amount given to the building fund by Judy Hays × Marginal tax rate
= $3,200 × 25%
= $800
We simply multiplied the building fund amount by the marginal ax rate so that the exact value can arrive
Answer:
It must sell 1,375 patterns each month in order to attain maximum profit, and that maximum profit is $3,181.25
Explanation:
In order to find the number of patterns that will translate into the maximum profit for the compamy, first we have to consider that the equation given is actually a parabola, and its vertex, when we draw it (Y equals profit and X equals units) proposes the maximum profit possible (if the formula continues to describe the company´s profit).
With that in mind, the general equation of a parabola is as follows.
in our case
a= - 0.002
b= 5.5
c= -600
And the formula, to find the quantity that will provide the maximum profit (x coordinate of the parabola) is as follows.
Therefore
Now, if we want to find what is going to be this maximum profit in terms of dollars, we just have to substitute x for 1,375 in the equation given, that is.
Best of luck.
B. a demand chart is what i think
Answer:
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