Answer:
I. Present values increase as the discount rate increases.
and
III. Present values are smaller than future values when both r and t are positive.
Answer: It is reasonable to assume that a profit-maximizing firm will never operate in the inelastic portion of its demand curve.
Explanation:
It should be noted that a firm that profit maximizing will not operate in the inelastic portion of its demand curve because at that point, the firm isn't maximizing profit.
When there's an inelastic demand, an increase in price will bring about a less than proportionate reduction in the quantity of the goods that's demanded. In such case, if the firm operates at the inelastic portion of its demand curve, when it increases price, this will lead to a reduction in income and profit will not be maximize.
Explanation:
service life refers to the time an asset will be used by a company and physical life refers to how long the asset will last.
Answer:
e) energy returned divided by energy invested.
Explanation:
When assessing energy resources, it is helpful to use a measure called Energy Returned On Investment (EROI), which is energy returned divided by energy invested.
Energy Returned On Investment (EROI) is a means of measuring the quality of an energy source.
Generally, EROI can be defined as the ratio of the quantity of usable energy (exergy) gotten from a specific energy resource to the quantity of energy used to produce that energy resource.
<em>Some examples of energy resources are fossil fuel, solar, hydropower, wind, nuclear, tidal, hydrogen, wave etc. </em>
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Suppose disposable income increases by $2,000. As a result, consumption increases by $1,500. Answer the following questions based on this information.
The increase in savings resulting directly from this change in income is $500 (2,000 - 1,500)
Marginal propensity to save (MPS)= change in savings/ change in income
MPS= 500/2000= 0.25= 25%
