Answer:
The correct answer is option D.
Explanation:
As the price of product increases the consumers will demand less because they now have to pay more than earlier.
The supply however is directly related to price level and will increase with the increase in price. The producers will produce more in order to enjoy higher revenue and profit.
This would encourage the other potential firms to enter the market, to earn higher profits.So more suppliers will enter the market.
However, this would lead to increase in supply of output. The excess supply will cause the price to fall eliminating higher profits.
Answer:
D. All of the choices could occur when using a single discount rate for all projects.
Explanation:
- The discount rate is the rate of return that is used to discount the cash flows analysis in determining the present and future values of cash flows.
- The discount rate also called the discounted cash flow analysis follows the valuation method based on the time concept of money the DFC helps to find out the variability of the project by calculating the present values by the discounted rate.
- <u>Thus if all the projects are assigned the same discount rates then the aim of revaluation of the project choices will be the same for all the projects like investing in standards assets like the bonds. </u>
Answer:
The statement which is incorrect or not true is Option A.
Explanation:
Juanita owns 60% of stock in the corporation, so from the profit of $200,000 in the current year, she should report
= $200,000 × 60%
= $120,000
But the Corporation distributed $45,000 to Juanita. Therefore, she should report only $45,000 for this year not $120,000.
Therefore, the first option is incorrect.
1. The Accelerator Theory of Investment 2. The Internal Funds Theory of Investment 3. The Neoclassical Theory of Investment.
those are the answers you are looking for
