This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain how a firm makes an investment decision. What will be an ideal ... (Read 152 times)

NguyenJ

  • Hero Member
  • *****
  • Posts: 516
on: Jun 29, 2018
Explain how a firm makes an investment decision.
 
  What will be an ideal response?

Question 2

Which of the following policies would not help promote economic growth?
 
  A) a law restricting elected officials from accepting expensive gifts and trips from private individuals
  B) a law that subsidizes research in nanotechnology
  C) a law that funds prenatal care for all expectant mothers
  D) a law requiring that the funds in an individual retirement account be taxed


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

emilymalinowski12

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jun 29, 2018
Answer to Question 1

A firm will decide whether or not to invest on the basis of expected rates of return. If the expected rate of return is greater than the interest rate, the firm should make the investment. Another way to consider investment is that the firm should invest up to the point where the marginal revenue product of capital equals the price of capital.

Answer to Question 2

D


NguyenJ

  • Member
  • Posts: 516
Reply 2 on: Jun 29, 2018
Excellent

hramirez205

  • Member
  • Posts: 345
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

When the United States gets stuck over a controversial issue—usually something a divided Congress ca When the United States gets stuck over a controversial issue—usually something a divided Congress ca
Example of a choice board used in studies of decision making. This one includes four factors for ... Example of a choice board used in studies of decision making. This one includes four factors for ...
The cartoonist’s hyperbole makes an excellent commentary on the social class disparity of our ... The cartoonist’s hyperbole makes an excellent commentary on the social class disparity of our ...
Ethical Decision-Making Model Cont Ethical Decision-Making Model Cont
Neck stretch. Rest the receiver’s head on the palm of your right hand, taking a firm hold on the ... Neck stretch. Rest the receiver’s head on the palm of your right hand, taking a firm hold on the ...
Effect of Increasing the Investment Rate on the Steady State Effect of Increasing the Investment Rate on the Steady State
Video: Structures that affect circulation - kidneys, blood volume and venous tone

For a complete list of videos, visit our video library