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

Author Question: Capital rationing refers to A) setting a minimum acceptable rate of return for a capital outlay. ... (Read 94 times)

APUS57

  • Hero Member
  • *****
  • Posts: 571
on: Jul 1, 2018
Capital rationing refers to
 
  A) setting a minimum acceptable rate of return for a capital outlay.
  B) selecting among profitable capital outlays when there are constraints on the funds available.
  C) determining the maximum price to pay for a capital product.
  D) None of the above

Question 2

Suppose 100 citizens each derive marginal benefit from submarines according to the function MB = 10 - Q. If subs cost 100 each to produce, what is the efficient quantity of submarines?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Athena23

  • Sr. Member
  • ****
  • Posts: 305
Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

The market demand is SMB = 1000 - 100Q. Setting this equal to the MC of 100 yields a quantity of 9. If the cost is shared equally, each citizen pays 1 for the ninth submarine, which they each value at 1.


APUS57

  • Member
  • Posts: 571
Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

cpetit11

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Feedforward control of breathing rate in an animal trained for athletic exercise. Feedforward control of breathing rate in an animal trained for athletic exercise.
Refraction and the Setting or Rising Sun Refraction and the Setting or Rising Sun
GDP and Capital per Worker, 2009 GDP and Capital per Worker, 2009
Effect of Increasing the Investment Rate on the Steady State Effect of Increasing the Investment Rate on the Steady State
Calculating Growth Rate of Bacteria Calculating Growth Rate of Bacteria
Compute the rate of discount allowed on a rontor -tiller that lists for K 341 and is sold for K ... Compute the rate of discount allowed on a rontor -tiller that lists for K 341 and is sold for K ...
Video: Buffers definition and the role of buffer in the body

For a complete list of videos, visit our video library