This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In a perfectly competitive market a firm's rental rate for a machine (v) will be given by: v = P(r + ... (Read 22 times)

hbsimmons88

  • Hero Member
  • *****
  • Posts: 526
on: Jul 1, 2018
In a perfectly competitive market a firm's rental rate for a machine (v) will be given by: v = P(r + d) where r is the prevailing rate of interest and d is the depreciation rate. In this formula P represents
 a. the present market price of the machine.
 b. the initial purchase price of the machine (assuming this differs from its present market price.
  c. the price of the firm's product.
 d. the depreciated value of the machine.

Question 2

The present value of 1 payable in the future decreases
 a. the higher r is and the sooner it is to be paid.
  b. the lower r is and the sooner it is to be paid.
  c. the higher r is and the longer time until it is paid.
  d. the lower r is and the longer time until it is paid.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nikmaaacs

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jul 1, 2018
Answer to Question 1

a

Answer to Question 2

c


hbsimmons88

  • Member
  • Posts: 526
Reply 2 on: Jul 1, 2018
Wow, this really help

cpetit11

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Evidence that the ATP synthase is a rotary machine Evidence that the ATP synthase is a rotary machine
Rebound Tenderness, Apply Firm Pressure to the Abdomen Rebound Tenderness, Apply Firm Pressure to the Abdomen
Factors That Affect Your Basal Metabolic Rate Factors That Affect Your Basal Metabolic Rate
Stock Market Tracks Growth in GDP Stock Market Tracks Growth in GDP
ECG machine. ECG machine.
Markets and Institutions Market Story Problem Markets and Institutions Market Story Problem
Video: Michaelis–Menten equation & Kinetic parameters

For a complete list of videos, visit our video library