Answer:
C) John's decision on how to allocate his time is consistent with the rationality assumption since the decision is intended to make him better off.
Explanation:
One of the pillars of modern economic theory is that individuals are rational and they will try to maximize their benefit at the lowest possible cost. Since resources are finite, then all our decisions are made on the margin. What is the marginal benefit that we can obtain from purchasing something at its marginal cost (marginal cost = sales price for an individual).
In this case, John is trying to maximize his utility, first he will go to the gym which probably provides a larger benefit to him, and then he is going to study (which also provides a benefit). He could have chosen to either go out to somewhere else or just stayed home and watch TV, play videogames, etc., but apparently these activities do not provide him enough benefits but represent a large cost in time.
Answer:
$250 million
Explanation:
If taxes do not exist and the firm has no outstanding debt, then the value of unlevered firm = total enterprise value of BDE
we can use the perpetuity formula to determine the total enterprise value:
total enterprise value = FCF / cost of equity
total enterprise value = $25 million / 10% = $250 million
Answer:
What is the amount of depreciation that warren should record for year 3 under the straight-line depreciation method? $15500
Explanation:
Net Value Dep. year End Net value.
Year 1 55000 12000 43000
Year 2 43000 12000 31000
Year 3 31000 15500 15500
Year 4 15500 15500 0
The answer top the question stated above is letter D. It would improve the economy's situation.
For F<span>riedrich Von </span>Hayek, less government intervention<span> meant more </span>economic freedom. He believed that if people are free to choose, then the economy runs more efficiently.
Thus, it would improve the economy's situation.
Answer:
The correct answer is: enter the market; exit the market.
Explanation:
In a perfectly competitive market, there is no restriction on entry and exit of firms. So profits will attract other potential firms to join the market. And when the existing firm incurs losses it will cause them to stop operating and exit the market.
Because of this, the firms in competitive settings are motivated to produce at a low cost and they come up with new ideas to please customers so that they earn a profit.
