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Author Question: The diagram below shows a firm's demand for its units of capital-coin-operated coffee machines. The ... (Read 88 times)

ShannenConnor

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The diagram below shows a firm's demand for its units of capital-coin-operated coffee machines. The firm places its machines in universities and colleges across Canada.



FIGURE 15-1

Refer to Figure 15-1. The downward slope of the firm's investment demand curve can be explained by


◦ the relationship between the MRP of the coffee machine and technology improvements to the coffee machines.
◦ the downward slope of the marginal cost of capital curve.
◦ the negative relationship between the interest rate and the present value of a future stream of MRPs generated by each coffee machine.
◦ the downward slope of the demand curve for the firm's product-cups of coffee.
◦ the negative relationship between the interest rate and the purchase price of the coffee machines.


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Marked as best answer by ShannenConnor on Oct 12, 2022

nora9826

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ShannenConnor

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Reply 2 on: Oct 12, 2022
Wow, this really help


tranoy

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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