The following table shows the investment and output options for an individual business. Employment of labour...
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The following table shows the investment and output options for an individual business. Employment of labour and technology is assumed to be constant. Capital Stock (Number of machines) 0 1 Select one: a. 2 The business operates in competitive product and factor markets. Its output sells for $5 per unit. The price of a new machine is $200. Machines depreciate at a rate of 3 percent and the real interest rate is 2 percent. How many machines will the business choose to invest in? b. 4 c. 0 d. 1 2 3 4 e. 3 Output (Number of units of output) 0 10 18 24 26 X The following table shows the investment and output options for an individual business. Employment of labour and technology is assumed to be constant. Capital Stock (Number of machines) 0 1 Select one: a. 2 The business operates in competitive product and factor markets. Its output sells for $5 per unit. The price of a new machine is $200. Machines depreciate at a rate of 3 percent and the real interest rate is 2 percent. How many machines will the business choose to invest in? b. 4 c. 0 d. 1 2 3 4 e. 3 Output (Number of units of output) 0 10 18 24 26 X
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Related Book For
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
Posted Date:
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