The answer is B. the cost of producing the second good or service increases.
Answer:
a. To produce at minimum average total cost, the firm must produce more output than it would need to produce at the minimum average variable cost.
Explanation:
The total cost of a firm minimizes when a firm produces more units. Variable cost of a firm is lower when there is more output produced. The average total cost includes the average fixed cost also for which output should be more so that total fixed cost is divided to the produced units resulting in lowest possible per unit cost.
Answer:
Present Value of Investment Opportunity = $95,096
Explanation:
Net cash inflow = Cash inflow - cash outflow
Given that net cash inflow = $30,000 per month for 4 years
Rate of return = 10%
Present Value = 
= $27,272.72 +$24,793.38 + $22,539.44 + $20,490.40
= $95,096 (rounded off to nearest dollar)
Present Value of Investment Opportunity = $95,096
Answer:
Stronger
Explanation:
Given that inflation affects trade flows, as the higher price of commodities have negative impacts on exports rates. Thus, all things being equal, it is expected that high inflation should cause downward pressure on the exchanger rate of Krendo.
Hence, the inflation effect will be STRONGER than the interest rate effect in influencing the exchanger rate of Krendo against the U.S. dollar.
