Answer:
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Answer:
c. A new technology such as the Internet has just been introduced, and it increases investment opportunities.
Explanation:
Nominal interest rate is the sum of real interest rate and expected inflation rate.
If expected inflation rate falls, the nominal interest rate also falls.
During a recession, people are more unwilling to borrow funds ,this pushes interest rate down.
If investment opportunities increases, the demand for funds would increase and nominal interest rate would increase too.
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Answer:
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Answer:
Check the following calculations.
Explanation:
C(q) = 50+0.20q+0.0800q2
MC(q)=0.20+0.160q
In the long run market will be in equilibrium when P=MC=ATC=LRAC=LRMC
where LRAC=long run average cost curve
LRMC=long run marginal cost curve
ATC=average total cost
noe total cost C(q)= 50+0.20q+0.0800q2
therefore ATC=C(q)/q
= 50/q + 0.20 + 0.0800q
therefore in long run MC=ATC
0.20+0.160q=50/q + 0.20 + 0.0800q
on solving q=25
therefore P=ATC=MC=0.20+0.160q
=0.20+0.16*25
P = 4.20
Answer:
7.5 years
Explanation:
Payback is the period a project takes to recover its initial capital outflow.
The formula for calculating the payback period = Initial investments divide by net cash flow per period.
Payback Period = Initial Investments/ Net Cash Flow per Period
Payback period = $450,000/ $60,000
Payback period =7.5 years