Answer:
Marginal Benefit = 7,6,5,4,3,2,1 .
Optimal Equilibrium = 4 units of consumption
Explanation:
Marginal Benefit is addition to total benefit when an additional unit is consumed.
Marginal Benefit = Total Benefit @ n - Total Benefit @ n-1
MB = 15-8 = 7
21- 15 = 6
26 - 21 = 5
30 - 26 = 4
33 - 30 = 3
35 - 33 = 2
36 - 35 = 1
Optimal Equilibium is where Marginal Benefit = Price . Such because : before that - MB > Price , increasing consumption is better for consumer. MB< Price , decreasing consumption is better for consumer.
In this case : Price i.e $4 = MB 4 at 4th gallon . So , this is optimal equilibrium.
Answer: 20%
Explanation:
The annual interest rate that John earned in this investment will be calculated thus:
At the annual interest rate, the money that's invested will be equal to the money that's earned. Therefore,
10000 = 2000/[1+20%]¹ + 29860/[1+20%]^7
10000 = 2000/(1+0.2)¹ + 29860/(1+0.2)^7
10000 = 1666.67 + 8333.33
10000 = 10000
Therefore, the annual interest rate John earned in this investment is 20%.
<span>Saving decreases a firm's capital stock and investment increases its capital stock.
When a company isn't giving out many shares or allowing a person to invest in the companies shares, there is a decrease in the firm's capital stock. In this case, the firm is saving the amount of shares they are allowing to be purchased. When investors are able to invest in the company, there is an increase in capital stock.
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Answer: 9.32%
Explanation:
The cost of levered capital is needed to calculate WACC.
Cost of levered capital = Cost of unlevered capital + (Cost of unlevered capital - cost of debt)(1 - tax) * Debt to equity ratio
Debt-equity ratio
= 22% / (100% - 22%)
= 28.205%
Cost of levered capital = 10% + (10% - 6%) * (1 - 31%) * 28.205%
= 10.78%
WACC = (Weight of debt * after tax cost of debt) + (Weight of capital * cost of capital)
= (22% * 6% *(1 - 31%)) + (78% * 10.78%)
= 9.32%
She needs a bachelor degree because an associate degree doesn't give her quite $800.