What is Marketability
What is Marketability. Write some points for it.
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Marketability:
• Marketability terms to the capability of an investor to sell a security rapidly, at a low transaction cost, and at its fair market value.
• The lower such costs are, the bigger a security’s marketability.
• The interest rate, or yield, on a security differs inversely with its degree of marketability.
The firm has $70,000 in implicit costs, and the economic profit of $40,000. This firm’s: (i) Explicit cost equivalent $30,000. (ii) Accounting profits equivalent $110,000. (iii) Normal gain equivalents $40,000. (iv) Explicit costs equivalent $110,000.
Describe why is the budget line slope downward?
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