Do the opportunity cost of borrowing and using

Assignment Help Microeconomics
Reference no: EM13338193

Lender perceive that you are risky,so you must pay 12 annual percent interest to borrow from them. You only receive only 6 percent on the funds you have deposited in the bank. Do the opportunity cost of borrowing and using your own funds differ in this example? Explain why and why not

Reference no: EM13338193

Questions Cloud

Explain weather transfer payments such as social security : Explain weather transfer payments such as social security and unemployment compensation are counted as government spending in calculating GDP
Why is determining the economys location on the curve : What is the Laffer curve, and how does it relate to supply-side economics? Why is determining the economy’s location on the curve so important in assessing tax policy?
What can you say about your price elasticity of demand : Suppose the price of widgets rises from $5 to $7 and consumption of widgets falls from 25 widgets a month to 15 widgets. Calculate your price elasticity of demand of widgets.
What is gdp for this economy in 2009 : In a small economy, gross investment in 2009 is $1,500, consumption spending is $6,000, net investment is $200, government spending is $1,500, exports are $2,000 and imports are $1,000. What is GDP for this economy in 2009?
Do the opportunity cost of borrowing and using : Lender perceive that you are risky,so you must pay 12 annual percent interest to borrow from them. You only receive only 6 percent on the funds you have deposited in the bank.
Develop a five-year strategic plan with cost estimates : Develop a five-year strategic plan with cost estimates and a time line. It should be 5-7 double-spaced, typed (12 point) pages plus exhibits. Your plan should include/address the following points:Develop a five-year strategic plan with cost estimates..
Treating the marginal cost curve as the supply curve : Treating the marginal cost curve as the “supply curve” and using the given demand curve,what price and quantity would a competitive market give?
Discuss some of the differences between developing countries : Discuss some of the differences between developing countries and industrial market countries, including differences other than per capita income. Give examples.
Explain who has a comparative advantage in the production : Explain who has a comparative advantage in the production of oranges and who has the advantage in the production of apples. (Show all math involved in your answer)

Reviews

Write a Review

Microeconomics Questions & Answers

  Draw a standard supply and demand diagram

Draw a standard supply and demand diagram which shows the demand for new housing units that are purchased each month, and the supply of new units built and put on the market each month.

  Why brownstowns management was reluctant to release info

A combination of low prices with strong competition by foreign competitors and so-called "legacy costs" of unions are cited as the primary reasons why so many steel companies are filing for bankruptcy. In 2002, as Brownstown Steel Corp.

  Draw a price-consumptioncurve when the price of x changes

A consumer’s utility function is U(x, y) = 2xy2 . The price of x is Px, theprice of y is Py, and the consumer’s income is I. (x and y do not have to be integers.)a) Derive the equation of the consumer’s demand curve for x.b) With y on the vertical ax..

  Calculate values at the profit-maximizing activity level

Calculate output, marginal cost, average cost, price, and profit at the average cost-minimizing activity level and calculate these values at the profit-maximizing activity level. Explain your answers briefly

  Inter-temporal production possibilities

Determine which of the following nations would you expect to have intertemporal production possibilities biased toward current consumption goods,

  Find the confidence interval for the population mean

What is the approximate p-value of this hypothesis and find the confidence interval for the population mean

  When did the most recent oil-related supply shocks occur

The U.S. Entergy Information Agency supplies current and historical data for world crude oil prices. Look both at current and historical data on world crude oil prices. Over the last six months, do you think the price of crude oil has produced an ..

  Find the reorder point

Given the optimal order quantity calculated above, if the average inventory is 136 cartons, then the monthly holding cost is ____ dollars, and the total cost including the cost of supply or the total unit cost for all units, holding and ordering i..

  What is the final single payment?

Immediately after the second payment, the terms of the agreement are changed to allow the balance due to be paid off in a single payment the next year. What is the final single payment? (final answer should be $7778).

  Illustrate the relationship between a perfectly competitive

At a price of $5 the profit-maximizing output for a perfectly competitive firm is 1,000 units per year. If the average total cost is $3 per unit, what will be the firm’s profit? If the average total cost is $6 per unit, what will be the firm’s profit..

  Use of coase theory

Discuss how to use Coase theory to see mandated mercury emissions and what do you think Coase would say to a supporter of free market environmentalism.

  What is best for nation as whole tariff-quota or free trade

1. Describe both quotas and tariffs. How do they impact domestic prices and deadweight loss  How does an import quota differ from an equivalent tariff What is best for a nation as a whole: a tariff, a quota, or free trade

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd