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just answer questions 3 and 4 the two on the bottom are only for reference. Question 3 1 pts Consider the same marginal revenue function
just answer questions 3 and 4 the two on the bottom are only for reference.
Question 3 1 pts Consider the same marginal revenue function and marginal benefit function given in the previous questions, with the households wealth at $5. If the firm and household both face an interest rate of 25%%, then the supply of funds is _ and the demand for funds is_ 0 3:2 02:2 0:2:3 03:3 Question 4 1 pts Once again, consider the same marginal revenue and marginal benefit functions given in the first two questions, with a household wealth of $5. At an interest rate of 33%, we have a market equilibrium O excess demand for funds O excess supply of funds Consider a firm that uses capital, K, to invest in a project that generates revenue and the MR from the 1st, 2nd, 3rd, 4th & 5th unit of K is $1.75, 1.48, 1.26, 1.18 and 1.13, respectively. (This is just MR table, as in the notes). If the interest rate is 21%, then the optimal K' for the firm to borrow is A household has a wealth endowment of $5 and can use this to either consume (C) or save (S). Consumption generates MB of $1.89, 1.51, 1.28, 1.19 & 1.11 from the 1st, 2nd,.. dollar allocated to consumption, respectively. If the current interest rate in the market is 31%, then to maximize the total payoff from C and S, it is optimal for the household to choose C = and 5 -Question 3 1 pts Consider the same marginal revenue function and marginal benefit function given in the previous questions, with the households wealth at $5. If the firm and household both face an interest rate of 25%%, then the supply of funds is _ and the demand for funds is_ 0 3:2 02:2 0:2:3 03:3 Question 4 1 pts Once again, consider the same marginal revenue and marginal benefit functions given in the first two questions, with a household wealth of $5. At an interest rate of 33%, we have a market equilibrium O excess demand for funds O excess supply of funds Consider a firm that uses capital, K, to invest in a project that generates revenue and the MR from the 1st, 2nd, 3rd, 4th & 5th unit of K is $1.75, 1.48, 1.26, 1.18 and 1.13, respectively. (This is just MR table, as in the notes). If the interest rate is 21%, then the optimal K' for the firm to borrow is A household has a wealth endowment of $5 and can use this to either consume (C) or save (S). Consumption generates MB of $1.89, 1.51, 1.28, 1.19 & 1.11 from the 1st, 2nd,.. dollar allocated to consumption, respectively. If the current interest rate in the market is 31%, then to maximize the total payoff from C and S, it is optimal for the household to choose C = and 5Step by Step Solution
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