It is minium because it is going down
Answer:
a. return rate ,r =24%
b. Yes
c. see the explanation below
Explanation:
a. Let's represent customer’s expected return if she borrows the money with 'r'
100 -90 = $106/(1+r) - 90*1.04/(1+r)
10= 12.4/(1+r)
1+r= 1.24
r=24%
b. It is obviously true that borrowing makes investment more attractive .
c. In both operating periods and bankruptcy, the debt has a fixed life and has a priority claim on cash flows. This is due to the fact that interest is paid before the claims to equity holders, and should in case the company fails on interest payments, it will be declared bankrupt, its assets will be sold, and before any payments are made to equity holders, the amount owed to debt holders will be paid
In the short run, the individual competitive firm's supply curve is that segment of the: "marginal cost curve lying above the average variable cost curve."
<h3>
What is the short run supply curve?</h3>
The short run supply curve of a business is the section of its marginal cost curve that is higher than its average variable cost curve.
According to the law of supply, when the market price rises, the company will supply more of its product.
A perfectly competitive business maximizes profit by generating the amount of production that equals the product's price and marginal cost.
Learn more about Short-Run Supply curve at;
brainly.com/question/15178628
#SPJ1
Answer and Explanation:
As we know the elasticity of supply defines the relationship between the percentage change in quantity supplies with respect to the percentage change in price
Now in the case when the supply of supply curve would be high that represents it is sleeper and when it is steep so the demand curve i.e. shifted would have high change in price as compared with quantity
So here the lower slope i.e. 1 contains the high elasticity as compared with the highest slope i.e. 4
Answer:
Option B is correct
Explanation:
In an indefinitely repeated game, a firm might use a trigger strategy to punish a rival that defects from a cooperative strategy. A trigger strategy threatens other players with a punishment of a worse level if they deviate from the decided action profile.
In this game, players interact repeatedly with each other which might foster cooperation. Repeated games mean a situation in which the same stage game is played at each date.