« previous next »

Author Question: Sam, after taking a 200 loan from the bank to finance an investment that pays 1000 50 of the time ... (Read 11 times)

kshipps

  • Hero Member
  • *****
  • Posts: 571
on: Jul 1, 2018
Sam, after taking a 200 loan from the bank to finance an investment that pays 1000 50 of the time and 0 50 of the time at a 100 interest, discovers another riskier investment that pays out 5,000 but only 10 of the time, while the other 90 of the time it pays zero. Would the he want to switch to the riskier investment?
 a. Yes because his return has increased
 b. No because his liability to the bank has increased
  c. No because his return has decreased
 d. None of the above

Question 2

How many units should the firm produce? In other words, at what level of output does marginal cost equal marginal revenue?
 a. 1
  b. 2
  c. 3
  d. 4


jesse.fleming

  • Sr. Member
  • ****
  • Posts: 301
Reply #1 on: Jul 1, 2018
Answer to Question 1

a

Answer to Question 2

c


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Changes in Earth's atmospheric carbon dioxide levels over geological time. Changes in Earth's atmospheric carbon dioxide levels over geological time.
Taking a Patient’s Axillary Temperature Taking a Patient’s Axillary Temperature
Attention and memory are in demand during circle time. Attention and memory are in demand during circle time.
Dual Systems Model of Risk-Taking Dual Systems Model of Risk-Taking
Historical Time Line of Regulatory Acts, Standards, and Organizations Historical Time Line of Regulatory Acts, Standards, and Organizations
Piggy bank Piggy bank
Video: What are the Parts of a Plant Cell?

For a complete list of videos, visit our video library