Answer:
he interest rate on the loan is called the Discount Rate
Explanation:
Discount Rate - The discount rate relates to the interest rate paid on loans from the Federal Reserve Bank by business banks and other economic organizations through the discount window credit system.
And other definition of discount rate is the discount rate relates to the rate of interest used during the Discounted Cash Flow (DCF) assessment to assess the current value of future revenues.
Answer:
A) A firm in an oligopolistic market has to consider its own impact on price when making production decisions
Explanation:
A perfectly competitive market is a market with many firms selling identical product. There are free entry and free exist and the decision of a firm does not affect the price in the market as all firms are price takers. Therefore, each firm is independent under perfectly competitive market and production decisions of a firm in a perfectly competitive market does not affect the price in the market nor will it cause any reaction from other firms.
However, Oligopolistic market is a market where there are few firms which are 3 or more firms but not more than 20 firms selling identical or differentiated product.. Firms in oligopolistic market are interdependent which implies that the decision of one firm can affect price and this can cause reaction from other firms and then lead to a price war. A price war occurs when each firm continually reduces its own price in order to increase its market share which causes other firms to react reducing their own prices and this will make none of the firms to gain in the end. In order to avoid the price war, each firm in an oligopolistic market has to consider its own impact on price when making production decisions.
Answer:
Internal rate of return
Explanation:
The internal rate of return is that return in which the net present value equivalent to zero
i.e.
Net present value = 0
That means
Initial investment = Present value of cash inflows after charging the discounting factor like 10% 12% etc
So as per the given situation, the internal rate of return is the correct answer
Which law are we being asked about?
