<span>This was the reason for the formation of NAFTA.
NAFTA stands for </span>North American Free
Trade Agreement and this agreement was signed by Canada, Mexico, and the United States
by developing a trilateral trade bloc in North America. The <span>North American Free Trade agreement came into force on January 1, 1994.</span>
Answer:
Takeoff
Explanation:
Is the third stageof economic development in which rapid economic growth occurs, theeconomy diversifies from few industries to several industries.
Answer: ( Whether or not the task will be done)
Explanation:
Answer: c.) hire less labor and rent more capital
Explanation:
To answer this we would need to find out the Marginal cost per dollar of producing with either form of production being labour or capital.
The Marginal Product of Labour is 20 units resulting from $4 dollars so that means that for every dollar spent on Labour we get,
= 20/4
= 5 units of output.
However, The Marginal Product of renting Capital is 30 units resulting from $5 dollars so that means that for every dollar spent on Capital we get,
= 30/5
= 6 units of output.
This means that renting Capital is more efficient because we get 1 more unit of output per dollar and so to minimize cost of production without changing the level of output, the firm should hire less labor and rent more capital.
Answer:
b. The unlevered beta will remain the same and the levered beta will decline.
Explanation:
Unlevered beta excludes the effect of debt on the investment. It represents only the risk associated with equity of the company. Change in the debt to equity ratio will not effect the unlevered beta. Unlevered beta will remain same.
Unlevered beta includes the effect of debt on the investment. It represents the risk associated with equity and debt of the company. Change in the debt to equity ratio will change the unlevered beta. Unlevered beta will decline with the reduction in debt to equity ratio as risk associated with debt decreases.