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Author Question: You borrow $20,000 at an interest rate of 6% to open Candy Dan's, a gourmet sweet shop. You will ... (Read 67 times)

D2AR0N

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on: Apr 19, 2019

Question 1

Assume that the current interest rate is 7%. You invest $10,000 of your own money in a restaurant that you own and operate. The normal return on this investment is


◦ $0, as you used your own money.
◦ $700, as that is the interest forgone by not lending the money to someone else at a 7% interest rate.
◦ $10,000, as that is the amount invested in the restaurant.
◦ $10,700, the amount invested plus the interest charge on the investment.

Question 2

You borrow $20,000 at an interest rate of 6% to open Candy Dan's, a gourmet sweet shop. You will earn an economic profit if the return on your investment is


◦ between 0 and 6%.
◦ 6%.
◦ greater than 6%.
◦ 10% or greater.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by D2AR0N on Apr 19, 2019

choc0chan

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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D2AR0N

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Reply #2 on: Apr 19, 2019
TY


choc0chan

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Reply #3 on: Apr 19, 2019
You're welcome


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