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STatiana [176]
2 years ago
10

Greater optimism about the expected profits from investment projects A. shifts the demand for loanable funds curve leftward. B.

causes a movement upward along the demand for loanable funds curve. C. causes a movement downward along the demand for loanable funds curve. D. shifts the demand for loanable funds curve rightward.
Business
1 answer:
nata0808 [166]2 years ago
4 0

Answer:

Option (D) is correct.

Explanation:

When there is a greater optimism in the investors about the future profits from  various investment projects then this will induces investors to invest more on these projects.

Hence, there is a need of more loanable funds and the demand for loanable funds increases. This will shift the demand curve for loanable funds rightwards. All the investors in the market wants to earn more profits in the future. This would also increases the interest rate on borrowings, because of the higher demand for loanable funds.

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Firm A and Firm B are the only two companies that sell mail-order DVD rental subscriptions. For several years, Firm A priced its
sveta [45]

Answer:

b. Firm A engaged in predatory pricing.

Explanation:

Since Firm A and B are the only two companies that sell mail-order DVD rental subscriptions.

Firm A decided to price its subscriptions below average variable cost thereby causing Firm B to also sell subscriptions below average variable cost, but they went bankrupt and exited the market. Firm A then raised prices by 40% and is currently earning large, positive economic profits.

Based on this information only, an argument can be made that Firm A engaged in predatory pricing.

Predatory pricing is a marketing or pricing strategy that involves lowering the cost of goods and services for a short-term, in order to lure competing firms to lower their price, thus causing them to go bankrupt and exiting from the market.

3 0
2 years ago
"After a severe hurricane in South Carolina, the price of electric generators quadrupled. People living outside of South Carolin
Alona [7]

Answer:

Arbitrage

Explanation:

Arbitrage occurs when the same good sells for different prices at different market. This price difference allows market participants to earn riskless profit .

In this case, the generator is more expensive in South Carolina when compared with other places. Thus, in order to earn riskless profit, people would buy where it is cheaper and sell at South Carolina where it is more expensive.

Economic theory suggest that if this kind of buying continues, soon the prices would be the same in both markets .

I hope my answer helps you

5 0
3 years ago
Read 2 more answers
Mervon Company has two operating departments: Mixing and Bottling. Mixing has 350 employees and Bottling has 350 employees. Indi
krok68 [10]

Answer:

Allocated administrative cost for mixing is $81000

And allocated administrative cost for for bottling is $81000

Explanation:

We have given total number of employs for mixing = 350

And total number of employs for bottling = 350

Administrative cost = $162000

So total number of employs = 350+350 = 700

So allocation base for mixing =\frac{350}{700}=0.5

So allocated amount for mixing = 0.5×$162000 = $81000

Allocation base for bottling = =\frac{350}{700}=0.5

So allocated amount for bottling = 0.5×$162000 = $81000

3 0
3 years ago
On December 31, the balance in the office supplies account is $1,300. A physical count shows $510 worth of supplies on hand. Req
madam [21]

Answer:

Date                    Account title                                               Debit          Credit

December 1        Office Supplies Expense                           $790

                            Office Supplies                                                             $790

Explanation:

Office supplies is an asset but when it is used it should be debited to the office supplies expense account because it becomes an expense that should be catered for in the Income statement.

The office expense that is used for the year is:

= Book balance - Physical inventory

= 1,300 - 510

= $790

3 0
2 years ago
As cm cms cmc d nv wn ve enenv en n env nev envennv env env env en nv
Anvisha [2.4K]

Answer:

rudr6ityoxr6%eusrzt

Explanation:

7 0
2 years ago
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