Answer:
They decided to set up a partnership.
Explanation:
Two persons agreeing to share the <em>risks</em> and <em>profits</em> of their business
Answer: higher; lower
Explanation:
From the question, we are informed that three firms are currently producing and selling in a market. When one of the three firms exits the market, economists expect that there will be a rise in the equilibrium price while there will be a reduction in the equilibrium quantity.
This is because when one producer leaves, there will be less supply of the good that is sold, this will eventually lead to a rise in price.
I don't think interest rates should matter, try that.
Answer:
It could be to explain any confusion caused by differences in language
Explanation:
The official language in Japan is Japanese. Since some of the members of the team of Japanese corporation may not or have limited understanding of English Language, which was being used as a form of communication at the meeting, those who understand English very well among the members of the team of Japanese corporation may have to explain better in Japanese to their colleagues who do not or have limited understanding of English Language.
Answer:
b. The proposal is desirable and the rate of return expected from the proposal is less than the minimum rate used for the analysis.
Explanation:
Under the Net Present Value method we compute the present value of all cash flows, inflow or outflow
And these values are discounted at the minimum rate of return required if the resulting value is positive that means that the rate of return expected is less than minimum rate of return used to discount the value. In that case we are sure that the result of this project will be positive and favorable.
As the discount rate used is in, fact is higher than the actual rate of expected return, therefore this assures to return a profit.
Final Answer
b. The proposal is desirable and the rate of return expected from the proposal is less than the minimum rate used for the analysis.
