Answered step by step
Verified Expert Solution
Question
1 Approved Answer
use the first question to answer the second one Consider a firm that uses capital, K, to invest in a project that generates revenue and
use the first question to answer the second one
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 02 3 05 question 5 1 pts Consider the MR table for the firm in question 1. Say that this firm faces an interest rate of 28% and then borrows the optimal amount of capital. What is the total revenue that the firm will earn? 3.23 4.49 5.67 6.8 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started