--%>

Market interest rate at break-even investment

When land that rents for $100,000 yearly can be bought for $800,000 now, it will be a break-even investment when the market interest rate is: (i) 6%. (ii) 10%. (iii) 12.5%. (iv) 15%. (v) 8%.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Microeconomics

  • Q : Negative marginal revenue Monopolies

    Monopolies will not function in the inelastic portion of the demand curves they face since: (w) marginal revenue is negative. (x) total revenues are negative. (y) total revenue falls as less is produced. (z) marginal revenue is always greater than mar

  • Q : Price of related good in elasticity of

    How the demand for one good alters while the price of an associated good is changed is measured through the: (w) relative ratios of the slopes of the respective demands and supplies. (x) price cross elasticity of demand. (y) ratios of the respective p

  • Q : Advertising for higher prices Brand

    Brand name aspirin sells on higher prices than generic aspirin since: (w) higher prices mean higher quality. (x) they are chemically superior. (y) they cost more to produce. (z) advertising campaigns relate the brand name along with quality.

  • Q : Market power and inefficiency The

    The widespread and unregulated exercise of monopoly power is probable to result within: (1) economic inefficiency because price exceeds marginal cost. (2) the value of national income being higher than under competition. (3) a politically more accepta

  • Q : Demand and supply problem Assume that

    Assume that the demand for jeans rises. At similar time, since of an increase in price of cotton, the supply of jeans reduces. How will it influence the price and amount sold of jeans?

    Q : Human Capital-General Training The

    The knowledge regarding local trees and shrubs which Morgan learns as working as an apprentice landscaper in suburbs of a big city is an illustration of the advantages from: (i) Dirty work. (ii) Dues-paying. (iii) General training. (iv) High-skilled employment. (v) Sp

  • Q : Price times quantity in total revenue

    Total revenue equals: (w) price times quantity. (x) marginal revenue times marginal cost. (y) profit per unit of output. (z) total cost minus profit. Please choose the right answer from above...I want your suggesti

  • Q : Purely competitive industry in long run

    When a purely competitive industry is into long run equilibrium, in that case the total: (w) costs of all the firms’ combined outputs are minimized. (x) revenues of the industry are maximized. (y) welfare of society is at its mi

  • Q : Occurrence of economic profits in a

    Entry within a competitive industry will continue till: (w) accounting losses are driven to zero. (x) economic profits equal accounting losses. (y) bookkeeping profit approaches zero. (z) economic profits are driven to zero. Can an

  • Q : Most desperate market participants of

    Tax burdens on transactions are probably to be disproportionately borne through the relatively as “most desperate” market participants those, who are: (1) sellers when the market supply curve is relatively