Answer: Option (d) is correct.
Explanation:
Correct option: Only a perfectly competitive firm operates at its efficient scale.
In the perfectly competitive market and in the long run, the firms who are making losses will exit the market and those firms who are able produce at a point where price is equal to the average total cost will exist in the market.
However, monopolistic firms operates at a below efficient level of production and with an excess capacity.
Competitive firms are generally enjoys the productive efficiency in the long run because these firms have the capability to produce at a lower average total cost.
D. office of student federal aid
Answer:
2560.50
Explanation:
For bond valuation, the investor would be willing to pay, at the most, the present value of the future income stream discounted at 2%. Thus, the value of the bond can be determined as follows:
Years 1 2 3 4 5 Total
Principal 1,350 1,450 2,800
Interest 0 0 0 0 0 0
Total inflow 0 0 1,350 1,450 2,800
[email protected]% 0 0 0 1,247 1,313 2,561
Answer:
Fiscal policy is the adjustment of tax rate and government spending that is used to handle current economic situation.
There are several of criticism that usually found on fiscal policies.
- Time Lags.
The effect of fiscal policies could only be felt years after the policies are made. Often times, this goes unnoticed by the citizens of the country, making it look like that the government took no action to handle their economic issues.
- Strengthening foreign influence
One of the things that the government can do to reduce the inflation is by selling government bonds to the public. These bonds can be bought by companies from another countries. This will strengthen that country's influence over US economy.
- It could create a budget deficit for the next government officials.
Government in United States were reshuffled between 2-4 years. While the effect of fiscal policies could need more than 10 years before it actually can be felt. Sometimes, fiscal policies taken by previous government could create a deficit that had to be handled by the next government after the election.
