Answer:
C. decreasing output would increase the firm's profit.
Explanation:
The marginal concept explain the benefit or the cost that a company or firm gets of produce and additional unit of their product. In this case the marginal costs exceeds the marginal revenue, It means that the actual level of revenue isn't producing the optimum profit that could reach if the company decrease the output, for example
Marginal Cost= $1.20
Marginal revenue =$1
Difference = $1 - $1.20
= -$0.20
It means that the revenue of the firm increase but not at the same level that the marginal cost, that in this case is higher, it means that every additional unit affects negative the profitability of the company.
Asset transformation by financial intermediaries is the purchase of a primary asset or securities and their transformation into other assets in terms of risk and maturity.
A type of transformation where banks use deposits (mobilized funds) to generate income by pooling deposits to provide loans. More precisely, asset transformation is the process of converting bank liabilities (deposits) into bank assets (loans). Deposits are inherently subject to withdrawal by customers (depositors) at any time or as set out in the deposit contract/agreement. Loans are bank assets because they represent money that the bank lends and expects to receive back in the form of repayment of principal and interest. As such, banks perform asset transformation by providing long-term and short-term loans, with the interest differential being their transformation returns. Banks and other financial institutions usually perform asset transformation by offering their customers various financial products on both sides of the balance sheet, such as deposits, investment and loan products, etc.
Learn more about risk and maturity.
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I’d be happy to help but I need to know the options for the drop boxes. :)
Answer:
Explanation:
Net worth is the difference between a person's (assets - liabilities)
Based on the balance sheet equation; Assets = Liabilities + Equity , meaning that Assets - Liabilities = Equity .
With the above two equations, Net worth = Equity = $56,000
Debt-to- Equity ratio = Debt/ Equity
<em>Note: $80,000 mortgage will not be included as debt to avoid double counting error since it is is a pay towards a home(asset) already incorporated in the $56,000 net worth.</em>
So, D/E = 13,000 / 56,000
D/E = 0.2321
