I think the appropriate response is the boundaries of the firm. It is exercised in the vertical chain a firm ought to perform itself and which it ought to buy from autonomous firms in the market. Specifically, the most powerful work amid the most recent two decades on why firms exist, and what decides their limits, has been fixated on what has come to be known as the ''hold-up issue.
Answer:
<em>13.29%</em>
<em>Explanation:</em>
Answer :- Amount in checking deposit= $500 million-15%= $425 million
Amount in saving and time deposit= $250 million-4%= $240 million
Amount in equity capital = $ 250 million
banks before tax cost of funds=
checking deposit = $425*6/100= $25.5 million
Saving and time deposit= $ 240*14/100= $ 33.6 million
equity capital=$250 *25/100= $ 62.5 million
Weighted average cost of funds (WACC)= $25.5+33.6+62.5/($425+240+250)
=$121.6/915= 0.1329 or 13.29%
Answer: D. the procyclical behavior of labor productivity occurs due to firms' labor hoarding practices.
Explanation:
Keynesian Economists argue that firms practice labor hoarding which is the practice of keeping workers when they should not such as when there is a Recession. They should not keep these workers because demand has slowed so keeping them means that they will not be producing to meet the demand.
The procyclical behavior of labor productivity means that labor productivity goes by the Business Cycle in that it is high when the Economy is booming and low when it is in a Recession.
Productivity is calculated by dividing goods produced by the number of labor producing them.
By refusing to fire workers during a Recession, there will be too many workers producing too few goods which will decrease labor productivity which is why according to Keynesian Economists, the productivity is low in Recessions.
