--%>
Assignment Help - homework help

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 : Exhibiting Predatory Behavior If a firm

    If a firm attempts to drive rivals from its market and after that raises prices and adopts a strategy to deter entry, this is exhibiting: (w) grim strategy. (x) tit-for-tat strategy. (y) predatory behavior. (z) Nash equilibrium.

    Q : Subsidies on a good for buyers and

    Government subsidies on a good because of: (w) less of the good to be produced and purchased. (x) prolonged excess demands for the good. (y) buyers to pay lower prices, when sellers receive higher prices. (z) prolonged shortages of the good.

  • Q : Demands of prosperous American families

    The demands of prosperous American families are most likely most income elastic for their: (i) vacations in Hawaii. (ii) higher education. (iii) cell phones. (iv) fast food meals. (v) gasoline. Ple

    		•
  • Q : Revenue expenditure Why payment of

    Why payment of interest is treated as revenue expenditure? Answer: Since it does not cause any decrease in the liability of government.

    		•
  • Q : Advantage of Law of Equal Marginal in

    Assume that the last week your food budget yielded 5 utils from your previous $4 burrito; and 4 utils from your previous $5 hot fudge sundae. Purchasing one: (i) More burrito and one less sundae this week would reduce total utility. (ii) More sundaes and one less burr

    		•
  • Q : Firms supply curve in short run

    Describe firm’s supply curve in short run, operating in perfect competition? Answer: It is a MC curve of the firm beginning from a point where MC = AVC (that is, minimum).

    		•
  • Q : Enhancing society economic efficiency

    Society-extensive economic efficiency is most probable to be improved by: (1) competitive advertising. (2) cooperation between firms in a cartel. (3) increases in asymmetric information. (4) informative advertising. (5) wage and price controls. <

    		•
  • Q : Feature of constant elasticity demand

    A constant elasticity demand curve as: (w) cannot be negatively sloped. (x) must be a straight line. (y) cannot be a negatively sloped straight line. (z) has a positive slope. I need a good answer on the topic of <

    		•
  • Q : Effects of less liquid assets on

    When households become more willing to hold less liquid assets, the: (w) interest rate rises. (x) present value of future income falls. (y) interest rate falls. (z) stock market will crash. How can I solve my

  • Q : Is cotton textile is macroeconomic or

    Is the study of cotton textile business a macroeconomic or a microeconomic study? Answer: The study of cotton textile business is a microeconomic study.

    		•