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Author Question: If Urban Outfitters borrows 25 million from a bank to finance the construction of a new store, this ... (Read 34 times)

luminitza

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If Urban Outfitters borrows 25 million from a bank to finance the construction of a new store, this is an example of
 
  A) a bond market transaction. B) a stock market transaction.
  C) indirect finance. D) direct finance.

Question 2

Why is opportunity cost a ratio?
 
  What will be an ideal response?



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Missbam101

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Answer to Question 1

C

Answer to Question 2

The slope of the PPF is a ratio that expresses the quantity of lost production of the good on the y-axis to the increase in the production of the good on the x-axis moving downward along the PPF. The steeper the slope, the greater ratio, and the greater is the opportunity cost of increasing the output of the good measured on the horizontal axis.




luminitza

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Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it


Joy Chen

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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