--%>

Less present value by given price

When the market interest rate exceeds the rate of return you compute on an asset: (i) competition for profit must make its price rise quickly. (ii) its present value is less than its price. (iii) the market is in long term equilibrium. (iv) profit maximization requires buying the asset. (v) the price must rise quickly.

Please choose the right answer from above...I want your suggestion for the same.

   Related Questions in Microeconomics

  • Q : Efficient purely competitive market in

    When there are no externalities, in that case a purely competitive market in equilibrium is efficient since: (w) P = AC = MC. (x) total revenue equals total cost [TR = TC]. (y) P = MSB = MSC = MC. (z) MSB = MSC = MR > P.

  • 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 : Rule of thumb for office rent Is there

    Is there any rule of thumb for office rent or on lease per gross income? If yes, then explain?

  • Q : Problem on zero bond price You are

    You are provided a bond which will pay no interest however will return the par value of $1,000 20 years from now. When your needed return for this bond is 7.35%, what are you willing to reimburse or pay?

  • Q : Preference current consumption over

    When the preference for current consumption over future consumption weakens, in that case the: (w) interest rate rises. (x) interest rate falls. (y) present value of future income falls. (z) equilibrium level of investment falls.

  • Q : Price charging equality to marginal cost

    Within the short run, a price-maker firm along with important market power but that cannot price discriminate is unable to concurrently maximize profit and: (i) charge a price equal to marginal cost. (ii) minimize average total cost. (iii) produce out

  • Q : Net income after-tax under negative

    Under negative income tax system demonstrated in this figure, where a family of four all along with earned income of price of $15,000 per year would have a net income after-tax, as of: (1) $30,000 per year. (2) $27,500 per year. (3) $

  • Q : Problem regarding Subjective Prices

    Mike trades 6 vintage baseball cards for the Jake’s original Ty Cobb card. When Mike’s six cards had equivalent total market value with Jake’s Ty Cobb card, then this trade would show: (i) Unfair incentive. (ii) Demand price. (iii) Opportunity cost.

  • Q : Explain about term market failure The

    The phrase "market failure" refers to: (w) the failure of market economies to deal with social problems. (x) the Stock Market Crash of 1929. (y) cases where supplies and demands within private markets yield inefficiency, excessive or inequity instabil

  • Q : Meritocracy in System of Distribution

    An emphasis onto socioeconomic mobility based upon equality of opportunity, independently of inheritances of land or else physical capital, which is a centerpiece of a system of distribution termed as: (1) meritocracy. (2) laissez faire capitalism. (3