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Author Question: Comment on the following statement: Capital investment decisions always involve risk. What will ... (Read 114 times)

imanialler

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on: Jun 29, 2018
Comment on the following statement: Capital investment decisions always involve risk.
 
  What will be an ideal response?

Question 2

In cities with rent control, people have an incentive to list their apartments on sites such as Airbnb at rents ________ the controlled rates, because rent control causes a ________ of apartments.
 
  A) above; surplus B) below; surplus C) above; shortage D) below; shortage


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mariahkathleeen

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The statement is true. When firms make capital investment decisions, they must do so based on expectations about the future. Therefore, because the future is uncertain, these decisions will always involve some amount of risk.

Answer to Question 2

C


imanialler

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

bitingbit

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

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