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Consider a company that can invest capital to generate revenue and assume that the marginal revenue from the first five units of capital is as
Consider a company that can invest capital to generate revenue and assume that the marginal revenue from the first five units of capital is as follows: 1st has MR 2.25, 2nd has MR 1.75, 3rd has MR 1.40, 4th has MR 1.24 and 5th has MR 1.17.
One more time, consider the MR schedule from Problem 1, as well as the household's $5 of wealth and MB schedule given in Problem 3. But now assume both the household and company face an interest rate of 28%. In this case, then in the market for funds there is
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