Answer:
The answer is B.
Explanation:
Government spending is one of the components of Gross Domestic Product(GDP) and it includes all the government expenditures(its consumption, transfer spending and investment).
Government spends to influence the economy. For example, government increases its spending when the economy activity in the economy is low or to stimulate the economy.
Option B is correct because it encompasses all the government's area of spending while the remaining options mention one or two functions of the government spending and not all.
Answer:
a.
NPV X 44352,90
NPV Y 38729,29
b.
NPV X 28619,86
NPV Y 29008,94
Explanation:
To get the present value of each cash flow we use excel or spreadsheets.
File is attached with the comparison of both investments.
<u>Investment X </u>
Net Present Value (NPV) 44353 (Interest rate 8%)
Net Present Value (NPV) 28620 (Interest rate 20%)
<u>Investment Y </u>
Net Present Value (NPV) 38729
(Interest rate 8%)
Net Present Value (NPV) 29009 (Interest rate 20%)
A perfectly competitive firm and a monopolistic firm in the long-run equilibrium face exactly the same demand and cost curves, then they will also <u>earn zero </u><u>economic profits</u><u>, and attain the lowest possible unit costs (D).</u>
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Economic profit is the total revenue minus the total cost of a product produced by a firm. Cost in this term include the measurement of oppotunity cost.
Perfectly competitive firm is a firm in a market with many buyers and sellers and the price of products represents the equililbrium point between supply and demand. A firm in this market has almost no power to affect the product price.
In the long-run, a perfectly competitive firm will earn 0 (zero) economic profit, while earn accounting profits. This condition happens because entry and exit barriers for firms in perfect competitive market is low. Many firms can easily enter and exit the market.
Monopolistic firm is a firm in a market where many firms are producing similar but differentiated products. The entry barriers for thiis market is relatively low and the decisions of any firm do not dirrectly affecting its competitor within the market.
In the long-run, monopolistic firm will earn zero economic profits because the low entry barriers easily allows new competitors to join the market and reduce an old-player firm's demand. This condition push a firm to make its demand curve to be more elastic. Any change in the demand curve will also affecting a firm's marginal revenue curve as well. This situation then leads a firm to no-longer make an economic profit condition.
However, to ensure their sustainability in their respective markets, both firms will attain the lowes possible unit costs to earn accounting profits.
Learn more about Perfect Competition and Monopolistic Markets here: brainly.com/question/29454493
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Answer:
A Mortgage
Explanation:
A mortgage is a contract between two parties borrower and lender. In this agreement a bank or any other institution issues a loan against taking an title of an asset as a collateral that will become void if the mortgage is fully paid back with interest. The asset is taken as a security of the mortgage loan. The collateral should a specific asset that can be identifiable. Actual possession may not be transferred to lender only the ownership is transferred in many cases.
In this question the bank is taking a plant as a collateral from Roundwell Inc. against a mortgage loan of $10 million.
