Yes your answer is correct
Answer:
Hire more labor and increase the output.
Explanation:
Because Rear Gear is a profit-maximizing firm, it will hire more labor and increase the output.
This is because, when the firm has purchased a new sewing machine, they need to produce more in order to capture the fixed cost of production (i.e. cost of sewing machine). In order to do so, they need to hire more workers or labour to increase the total output.
Answer:
C. Individuals and corporations borrow at the same rate.
Revised Question:
A key underlying assumption of MM Proposition I without taxes is that:
A. financial leverage increases risk.
B. individuals can borrow at lower rates than corporations.
C. individuals and corporations borrow at the same rate.
D. managers always act to maximize the value of the firm.
E. corporations are all-equity financed.
Explanation:
Modigilani-Miller gave theories about the optimal capital structure of the firms. They proposed thier theories under <em>taxes and and without taxes</em> economies. They gave two propositions under each economy.
MM proposition I without taxes states that value of of firm with equity finance and value of a firm with debt finance are equal. So the capital structure of a firm is irrelevant in decision making.
The underlying assumption of the proposition is:
Presence of asymmetric information due to which, investor's and firm's cost of borrowing money is same.
Answer:
True
Explanation:
The fixed exchange rate came to an end in 1971 in the US.
Before 1971, the US currency value was tied to an ounce of gold. In 1971 the US economy was undergoing a recession. The US authorities bought all the gold value backing the dollar to end the recession. The dollar became a fiat currency.
The year also marked the beginning of the floating exchange system for the dollar.
Answer:
Advancement is part of the <u>"drive to acquire."</u>
Explanation:
The 4 drive theory includes:
Drive to acquire: move up, gain status and respect (such as with a new prestigious job)
Drive to Bond: to form social relationships
Drive to learn: satisfy curiosity
Drive to defend: protection and security
