What is the maximum amount you would pay for an asset that generates an income of $150,000 at the end of each year if the opportunity cost of using the fund is 9 percent?
- What is the maximum amount you would pay for an asset that generates an income of $150,000 at the end of each year if the opportunity cost of using the fund is 9 percent?
- Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations:
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A. Write out the equation for the net benefit.
B. What is the net benefit when q = 1? And when q = 5?
C. Write out the marginal net benefits.
D. What are the marginal net benefit when q= 1 and when q = 5?
E. What level q maximizes net benefit?
- A firm’s current profit is $550,000. These profits are expected to grow indefinitely at a constant rate of 5 percent. If the firm’s opportunity cost of funds is 8 percent, determine the value of the firm.
- Income elasticity of demand has various applications. Explain each application with the help of an example.
- Explain the nature and scope of managerial economics.
