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Vsevolod [243]
3 years ago
11

"An industrial park is sold to a group of investors in 2002. They plan to hold on to the industrial park because it is a growing

area. The reason the investors consider this a long term investment is because of:"
Business
1 answer:
dalvyx [7]3 years ago
8 0

Answer:

Investments in things such as an industrial park are done for the long-term mainly because of two reasons:

  1. These investments tend to be expensive (require a lot of capital).
  2. Because they are expensive, these investments take more time to make a return, and as a result, the investors have to wait, usually a few years, to earn money on them. For this reason, either they are made for the long-term, or are not made at all.

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Utility is referred to as the satisfaction or joy an individual perceives by consuming a good or service. The more the individual consumes that good the higher the satisfaction until a point where the joy starts to diminish and is eventually null. The concept of utility assumes individuals make rational decisions to maximize their benefits.

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