An investor holds two bonds, one with 5 years until maturity and the other with 20 years until maturity. Which of the following
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Answer:
hello your question is incomplete attached below is the missing part
answer: Pd = 1658 , Qd = 42
Explanation:
The monopolist will choose a discount price of ( Pd ) = 1658 and sell 42 units of the good in the discount market
since the standard price is at $1800 and the Qm ( standard monopoly quantity) is at 200 for the Monopoly to be profitable the amount of good to be sold to customers with reservation prices greater than or equal to standard price should be greater than the good offered at discount price and also the discount price after using a coupon should be lower than the standard price (Pm)
It should be noted that in the PPC, the downward sloping line 'ab' is the production possibility curve.
<h3>How to illustrate the information?</h3>In the diagram, since point 'A' falls on the PPC itself, it represents the full employment of resources. Point 'A' represents the combination of 30 million bananas and 10 million robots.
Opportunity cost producing a robot = Total bananas possible / Total robots possible
Opportunity cost producing a robot =60/20
Opportunity cost producing a robot = 3 bananas
The area outside PPC represents the unattainable combinations of two goods.
During the recession, the resources are inefficiently used and the production combination is represented by point 'B' which falls below PPC When the production technology improves only for one good and not for the other, the PPC rotates
Marginal opportunity cost of a robot = 80 million bananas / 10 million robots
The marginal opportunity cost of a robot = 8 bananas
Opportunity cost of 2 million robots = 8 bananas × 2 million
The opportunity cost of 2 million robots will be 16 million bananas.
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