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emmasim [6.3K]
2 years ago
9

The present value of an annuity increases as the discount rate increases. Group of answer choices True False

Business
1 answer:
allochka39001 [22]2 years ago
3 0

Answer:

False

Explanation:

Discount rate and present value of an annuity are inversely proportionate to each other. If Discount rate increases, then the present value of an annuity decreases. If Discount rate decreases, then the present value of an annuity increases. The annuity FV payments are reduced based on the discount rate. So, the higher the discount rate, the lower the present value of the annuity is and the present value of an annuity is based on the time value of money

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Explanation:

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3 years ago
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goblinko [34]
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Zepler [3.9K]

Answer:

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3 years ago
Marginal cost increases as the quantity of output increases. This reflects the property o
sleet_krkn [62]

The property of marginal cost increasing as the quantity of output increases is known as diminishing marginal product.

<h3>What is diminishing marginal product?</h3>

Diminishing marginal product states that says as more units of a variable input of production is added to a fixed factor of production, output might increase initially but after a point total output would increase at a decreasing rate and marginal product would begin to decrease.

To learn more about diminishing marginal product, please check: brainly.com/question/10511919

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2 years ago
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