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 105 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 :)

marict

  • Member
  • Posts: 304
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

The rate of evolution in short­ and long­lived plants The rate of evolution in short­ and long­lived plants
Advection of an air mass with a different ELR (environmental lapse rate). Advection of an air mass with a different ELR (environmental lapse rate).
Refraction and the Setting or Rising Sun Refraction and the Setting or Rising Sun
How to solve rate problems leading to fractional equations (Question 1) How to solve rate problems leading to fractional equations (Question 1)
Capital’s Share of Income in a Cross-Section of Countries Capital’s Share of Income in a Cross-Section of Countries
You make 4 semi-annual deposits starting at $350 and increasing at a constant rate of 2.14%. ... You make 4 semi-annual deposits starting at $350 and increasing at a constant rate of 2.14%. ...
Video: Erythropoietin (EPO)

For a complete list of videos, visit our video library