--%>

Interest-rate cost

A profit-maximizing firm must not undertake a R&D project for which the: 1) Expected rate of return exceeds its interest-rate cost of funds. 2) interest-rate cost of funds exceeds the expected rate of return. 3) expected returns are in the distant future. 4) the expected returns, though potentially very large, are uncertain.

   Related Questions in Microeconomics

  • Q : Competition-Social Welfare problem The

    The purely competitive firm in the output market which hires from a purely competitive labor market will employ the labor at the point where VMP = W as the firm: (i) Operates in society's best interest. (ii) Wants to be quite fair to workers. (iii) Is egalitarian inst

  • Q : Perfectly price elastic demand For

    For Cournot’s Spring Water the demand is perfectly price elastic at:  (i) point a. (ii) point b. (iii) point c (iv) point d. (v) point e.

    Q : Strikes and Lockouts Can someone please

    Can someone please help me in finding out the accurate answer from the following question. The outcomes of strikes do not comprise: (i) Losses of the perishable products. (ii) Shipping delays. (iii) Decreased production costs. (iv) Shortages.

  • Q : Monopolies in monopolistically

    Unlike several monopolies, a monopolistically competitive firm in long-run equilibrium produces a level of output where is: (1) price equals marginal cost. (2) pricing is economically efficient. (3) marginal revenue most greatly exceeds marginal cost.

  • Q : Good theory It is frequently said that

    It is frequently said that a good theory is one which can in principle be refuted by an empirical, data-oriented study. Describe why a theory which cannot be evaluated empirically is not a good theory.In evaluating theory there are two steps: f

  • Q : Alfred Marshall categorization of

    If Alfred Marshall categorized the analytical periods of time, he supposed that in short run it is: (i) Not possible to vary technology and at least one resource is fixed and hence at least one kind of cost is as well fixed. (ii) Possible to move the resources from on

  • Q : Equilibrium rent imposing price ceiling

    When the New York City government only permits landlords to charge $800 a month for a little apartment while equilibrium rent would be $1,500, this has imposed: (w) price floor. (x) regulation which will result in market surpluses. (y) regulation that

  • Q : Elastic Demand for Labor At existing

    At existing wages the LEAST elastic demand for the labor is most likely faced by: (i) Unskilled harvest workers. (ii) Garment workers. (iii) Assembly line workers. (iv) Dentists. Can someone please help me in findi

  • Q : System of Note-issue Name the System of

    Name the System of Note-issue in India. Answer: In India, the system of note-issue is the Minimum Reserve System. The RBI is needed to keep minimum reserves of Rs 2

  • Q : Wise and efficient use of grocery in

    I have a problem in economics on Wise and efficient use of grocery in Consumer Surplus. Please help me in the following question. The consumer surplus is most probable to be raised by: (i) Wise and proficient use of grocery store coupons. (ii) Rises in the production