The marginal propensity to consume (MPC) is the change in consumption divided by the change in saving

A company's capital structure is made up of 40% debt and 60% common equity (both at market values). The interest rate on bonds similar to those issued by the company is 8%. The cost of equity is estimated to be 15%. The income tax rate is 40%

The company's weighted cost of capital is A) 11.5%. B) 12.2%. C) 10.9%. D) 8.9%.

A competitive price-searcher firm is currently producing 10 units of output. At this level of output the firm is charging a price equal to $10, has marginal revenue equal to $6, has marginal cost equal to $6, and has average total cost equal to $12 . From this information we can conclude that

a. the firm is currently earning zero profit. b. the profits of the firm are negative. c. firms are likely to enter this market in the long run. d. the firm would earn more profit by reducing output.