Answer: Reduce output
Explanation: Profit = Total Revenue – Total Costs
Therefore, profit maximization occurs therefore, profit maximization occurs at the most significant gap or the biggest difference between the total revenue and the total cost.
TC = AC×Q = $4×500 = $2,000
Theoretically, profit maximization occurs where MR = MC
From the forgoing, producing an extra unit will increase the cost of the company thereby reducing profit.
The company should reduced output to around 499 units or less
Answer:
less desirable to other investors
Explanation:
<u>Given</u>: Current fixed coupon rate 5%
Market rate of interest 5%
New Market Rate of Interest 6%
Value of a bond is inversely related to economy interest rate or the yield to maturity (YTM). Value of a bond is expressed by the following equation:
wherein, C = Coupon rate of interest
YTM = Market Rate of Interest or interest rate in the economy or investor's expectation
n= Years to maturity
RV = Redemption value
In the given case, C = YTM i.e par value bond. When ytm rises to 6%, the value of the bond shall fall making such a bond less attractive since it represents lower coupon payments than investor expectations.
Thus, now the bond would be less desirable to other investors.
Answer:
D is very good but A and c are good to And b if so I would choose all four
Answer:
C. financial intermediation.
Explanation:
The financial intermediary is a process in which the bank or other financial institutions provides a service of helping to save or borrow money.
A financial intermediary also helps in facilitating the diverse needs of lenders and borrowers
The funds are raised from people who wants to deposit the money.
