Answer:
The Risk-free asset in the Norwegian is 3.8%
Explanation:
The computation of the real rate of return of Norwegian security is shown below:
The calculation is done by comparing the two countries risk-free asset and the inflation rate.
Risk-free asset in the U.S - expected inflation rate in the U.S = Risk-free asset in the Norwegian - expected inflation rate in the Norwegian
3.4% - 1.8% = Risk free asset in the Norwegian - 2.2%
1.6% + 2.2% = Risk free asset in the Norwegian
The inflation rate should be deducted from the countries risk-free asset because it gives the fair value of the return.
So, the Risk-free asset in the Norwegian is 3.8%
Answer:
a) Declines initially as output increases and rises with further increases in output
Explanation:
Marginal cost can be defined as the additional or extra cost that is being incurred by a company as a result of the production of an additional unit of a product or service.
Generally, marginal cost can be calculated by dividing the change in production costs by the change in level of output or quantity.
On a related note, marginal cost curve is the change in total cost (TC) divided by a change in quantity of output.
The marginal cost curve declines initially as output of a business firm increases and rises with further increases in output.
The correct answer is exchange or trade