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2 years ago

11

As the interest rate , the opportunity cost of holding money and individuals choose to hold __ mone

y.

1 answer:

PtichkaEL [24]2 years ago

3 0

Decreases

Decreases

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Correct me if I'm wrong :)

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You want to purchase a new motorcycle that costs $29,800. The most you can pay each month is $510 over the life of the 78-month

TiliK225 [7]

Answer:20,5369%

Explanation:We know APR is the Annual Percentage Rate that is paid over a loan. If we are to pay during 78 months at most $510 each month, then we could pay in total 510*78=$39780 in the course of the six years and a half that constitute the 78 months. This means that yearly we can pay in interest $39780/6,5=$6120 each year, this represents the interest over the loaned money, i.e., the $29800. Then the APR is

$\\\frac{6120}{29800} =20,5369\%$ annualy or 1,71141% monthly and it is the highest APR you could afford, 20.5369%

4 0

3 years ago

Fixed cost per unit is inversely proportional to the volume of units produced.

Levart [38]

True. Fixed cost per unit is inversely proportional to the volume of units produced.

Fixed costs per unit are inversely proportional to the volume produced because depending on the amount of units made, the amount spent on fixed costs is then based. Because they are related to one another, this statement is true.

5 0

3 years ago

What are the two risk components that determine a firm's cost of equity?

Yanka [14]

Traditionally, the formulas used to express a firm's cost of equity are the dividend capitalization model and the capital asset pricing model (CAPM).

Explanation:

Generally, two risk components determine a firm's cost of equity. The first is the systematic risk associated with the broader equity market. All firms are exposed to this risk, and it cannot be mitigated through diversification.

The second risk component is the unsystematic risk associated with the firm in question. This risk, often reflected as beta, a measure of the stock's volatility in relation to the volatility of the broader market, can be mitigated via diversification.

5 0

3 years ago

A natural monopolya. exists when many sellers experience lower average total costs than potentialcompetitors do.b. exists when a

liq [111]

Answer:

e. exists when a single seller experiences lower average total costs than any potential competitor.

Explanation:

A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.

For example, a public water supply company is an example of a monopoly because they serve as the only source of water provider to the general public in a society.

A natural monopoly exists when a single seller experiences lower average total costs than any potential competitor because of the very high start-up or initial cost and economy of scale.

8 0

3 years ago

Suppose the production function in an economy is Y = K0.5L0.5, where K is the amount of capital and L is the amount of labor. Th

maw [93]

Answer:

Therefore new level of output = (64x0.5)*(64.0.5) = 1,024

Explanation:

Suppose the production function in an economy is Y = K0.5L0.5,

where K is the amount of capital and

L is the amount of labor.

The economy begins with 64 units of capital and 16 units of labor.

If a sudden immigration quadruples the size of the population, while the capital stock is unchanged, what is the new level of output?

K remains 64 and L= 16 x 4 = 64

Therefore new level of output = (64x0.5)*(64.0.5) = 1,024

What is the new wage and rental price of capital?

The rental price for capital is expected to remain unchanged because there is no change in the quantity of capital But the wage level is expected to drop because of excess supply due to the immigration boom.

What share of output does labor receive now?

The function remains unchanged in proportion which is 0.5 but in absolute figures it will receive 0.5*1,024 = 512

5 0

3 years ago