Answer:
With the longer duration of unemployment benefits, firms needed to keep wages high to attract people to work. This caused downward wage rigidity, leading to persistent higher unemployment
Based on the number of apartments that Sasha can rent at 6 and 7 hours, her marginal benefit in the 7th hour is<u> 3 apartments. </u>
<h3>What is Sasha's marginal benefit?</h3>
This refers to the additional number of benefits that Sasha gets when she works an extra hour.
As a result of working one extra hour from 6 hours to make it 7 hours, the additional benefit Sasha gets is:
= 12 - 9
= 3 apartments.
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A firm raised all its capital via equity rather than debt. Such a firm is also referred to as a un-levered firm. There are two types of company which differs by its capital structure: Levered company and un-levered company. A levered company has debt and equity in their capital structure, while a un-levered company has no debt in their capital structure composition.
Capital structure is a company's composition of funding to operate their business or to invest them for gaining profit. Choosing debt or equity or both for the capital structure of a company is a vital decision because each of that option generates a cost called the cost of capital.
The cost of capital for equity called dividend, meanwhile the cost of capital of debt called interest. Finance managers must be precise and considerable for making the capital structure decision. They must measure which choice is more profitable considering the amount and the tenor of the cost. This tenor means at what amount of time the company must pay the cost of capital. This term only applies to debt only.