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 53 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
YES! Correct, THANKS for helping me on my review

lkanara2

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Tree species richness in North America is correlated with evapotranspiration rate. Tree species richness in North America is correlated with evapotranspiration rate.
Rising and Setting of Stars at Middle North Latitudes Rising and Setting of Stars at Middle North Latitudes
Effects of Elevation on Heart Rate and Ventilation Effects of Elevation on Heart Rate and Ventilation
How to solve rate problems leading to fractional equations (Question 1) How to solve rate problems leading to fractional equations (Question 1)
What is the minimum uncertainty in its position? What is the minimum uncertainty in its position?
Calculus help: Find the absolute minimum and absolute maximum f(x) = (x2 —1) on [-1.2] Calculus help: Find the absolute minimum and absolute maximum f(x) = (x2 —1) on [-1.2]
Video: Ear Virtual Tour Animation

For a complete list of videos, visit our video library