Draw an investment demand curve
When we draw an investment demand curve we hold constant all of the following except:
A) the expected rate of return on the investment.
B) business taxes.
C) the interest rate.
D) the present stock of capital goods.
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What price-quantity combination maximizes your firm's profits. Calculate the maximum profits. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price quantity combination?
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