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PtichkaEL [24]
3 years ago
15

If the real rental price of capital is $10,000 per unit and the real cost of capital is $9,000 per unit, to maximize profits a f

irm should: add to its capital stock. keep its capital stock unchanged. let its capital stock shrink. reduce the real rental price of capital.
Business
1 answer:
Phoenix [80]3 years ago
8 0

Answer:

Add to its capital stock.

Explanation:

Rental firms earn profit by buying goods and renting them out at a price higher.The advantage of owning capital is the real rental price of capital for the units of capital owned and rented.

In this case, the real rental price of capital is $10,000 per unit where as the real cost of capital is $9,000 per unit. This means the firm is getting a profit from the business of $1000 per units assuming interest on their loans, cost of loss/ gain  on the price of capital and depreciation costs are taken care.To maximize profit at this level, the firm can increase capital stock by buying more goods and renting them out at the current real rental price of capital.

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A _____ has nonprofit status and is owned by its members
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Answer:

D Credit Union

Explanation:

7 0
3 years ago
A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of
Reika [66]

Answer:

$4 and $4

Explanation:

The computation are shown below:

Per hour cost = Total set up cost ÷ Total direct labor hours

                          = $64,800 ÷ $81,000

                          = $0.8

Now the set up cost would be

= Per hour cost × Direct labor hours per unit

For Plus

= 5 × $0.8

= $4

For Max

= 5 × $0.8

= $4

All other given information is not important. Hence, ignored it

4 0
3 years ago
When making a decision, you decide that the expected benefits of your choice outweigh the expected benefits of all other options
lakkis [162]

Answer:

The right solution will be "trade-offs".

Explanation:

  • An exploration of trade-offs is a way of choosing between opposing alternatives.
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3 0
2 years ago
In the financial services sector, some organizations have implemented a three-lines-of defense model. What does the use of this
Dovator [93]

Answer:

The correct answer is: This organization uses a layered approach that creates a separation of duties.

Explanation:

The Three Lines of Defense model is an approach used to divide the duties of the financial department of an organization aiming to improve risk management and control. The first line of defense involves management and control measures. The second line includes financial control, security, quality, inspection, and compliance. The first and second lines of defense are in charge of <em>senior managers</em> of the entity.

The third line of defense involves the internal audits of the company and is in charge of the <em>Board of Directors</em> (BoD).

4 0
2 years ago
Huge differences in the wealth of relatively similar countries such as north and south korea are an example of how different ___
NISA [10]

It should be noted that  differences in the wealth of relatively similar countries such as North and South korea are an example of how different Economic and political conditions affect businesses.

<h3>What are Economic and political conditions in business?</h3>

Economic and political conditions that do affect business can be regarded as the factors in the country as well as government policy that can influence the business.

Therefore, differences in the wealth of relatively similar countries such as North and South korea are an example of Economic condition that affect business.

Learn more about Economic and political conditions at:

brainly.com/question/21400963

5 0
2 years ago
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