Answer: A- Workers and Firms May not have rational expectations.
Answer:
B. Spending by firms on capital goods is declining.
Answer:
Payback period = 3 years
Explanation:
<em>The payback period is the average length of time it takes the cash inflow from a project to recoup the cash outflow.</em>
<em>Where a project is expected to generate a series of equal annual net cash inflow, the payback period can be calculated as: </em>
<em>Payback period =The initial invest /Net cash inflow per year
</em>
The cash inflow = Net operating income + Depreciation
= 105, 000 + 45,000 = 150,000
Note we have to add back depreciation because it is not a cash-based expenses. And payback period makes use of only cash-based revenue and expenses.
Payback period = 450,000/150,000
= 3 years
Payback period = 3 years
Answer:
the marginal revenue from selling the fifth unit is
$25
Explanation:
Perfect competition is market structure in which the following information:
All firms sell an identical product .
All firms are price takers , cannot influence the market price .
Market share has no influence on prices.
Buyers have complete informationabout the product being sold and the prices .
Resources for such a labor are perfectly mobile.
Firms can enter or exit the market without cost
The government helped the economy by preventing monopolies that way small independent buissness could survive.