In microeconomics how many businesses would be analyzed at the same time?

Suppose a firm is considering the purchase of a machine which when used will increase its total revenues by $10,000 for the year

xz_007 [3.2K]

Answer: Be undertaken because the rate of return is 5 percent greater than the interest rate

Explanation:

Given the following ;

Revenue increase = $10,000

Cost of machine = $8,000

Calculating the Rate of Return on the investment ;

FV = PV × (1 + r)^n

FV = Revenue increase = $10,000

PV = Cost of machine = $8000

n = period = 1 year

r = rate of return

$10000 = $8000 × (1 + r) ^1

1 + r = $10,000 ÷ $8,000

1 + r = 1.25

r = 1.25 - 1

r = 0.25 = 25 %

Interest rate = 20%

Rate of Return on investment = 25%

Rate of Return is 5% greater than interest rate

6 0

2 years ago

Website : https://www.yelp.com/biz/park-tudor-school-indianapolis

const2013 [10]

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4 0

2 years ago

A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future finan

Bezzdna [24]

Answer:

financial plan.

Explanation:

4 0

2 years ago

the area of a rectangle is 600 cm2 and its breadth is two-third of its length find the length and breadth of the rectangle

alexandr1967 [171]

Given:

Area of a rectangle is $600 \text{cm}^2$ .

Breadth is two-third of its length.

To find:

The length and breadth of the rectangle .

Solution:

Let x cm be the length of the rectangle.

Then, Breadth or width of the rectangle = $\dfrac{2}{3}x$ cm

Area of a rectangle is

$Area=Length \times Breadth$

$600=x \times \dfrac{2}{3}x$

$600=\dfrac{2}{3}x^2$

Multiply both sides by 3.

$1800=2x^2$

Divide both sides by 2.

$900=x^2$

Taking square root on both sides.

$\pm \sqrt{900}=x$

$\pm 30=x$

Length cannot be negative. So, x=30.

Now,

Length = $30\text{ cm}$

Breadth = $\dfrac{2}{3}\times 30\text{ cm}$

= $2\times 10\text{ cm}$

= $20\text{ cm}$

Therefore, the length of the rectangle is 30 cm and the breadth is 20 cm.

8 0

2 years ago

Is zero economic profit inevitable in the long run for monopolistically competitive firms? in the long run, monopolistically com

iogann1982 [59]

Firms usually engage in a lot of activates for profit. Zero economic profit may continue to earn profit by reducing costs.

A monopolistic competitor, like some organizations often earn profits in the short run. The entry of some firms into the same market can bring about a shift in the demand curve faced by a monopolistically competitive firm.

When economic profit is zero, an organization is known to be earning the same as when its resources were used in the next best alternative.

See full question below

Is zero economic profit inevitable in the long run for monopolistically competitive firms? In the long run, monopolistically competitive firms

A. will not continue to earn profit because the cost of production will rise as new firms enter the market.

B. may continue to earn profit by convincing consumers their products are different.

C. will continue to earn profit due to barriers to new firms entering the market.

D. may continue to earn profit by instead beginning to produce a product identical to competitors.

E. will not continue to earn profit because monopolistically competitive firms produce identical products.

Learn more from

brainly.com/question/14406708

6 0

2 years ago