Suppose a mechanic uses $150,000 of his own money to start a business. The rate of interest he could earn in a savings account is 5 percent, and the rate of interest he could earn by investing in bonds is 8 percent. What is the opportunity cost of capital when the mechanic uses his money to start his own business?
a. $7,500/year
b. $8,000/year
c. $19,500/year
d. $12,000/year
e. $150,000/year
d
Economics
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By connecting the cost minimizing input bundles, we get the _______________
Fill in the blank(s) with the appropriate word(s).
Economics
Management's power in collective bargaining sessions rests on
A. The firm's market power in pricing its product. B. The ability to lock out workers by closing stores or factories. C. The ability to fire nonunionized workers. D. The company's stock valuation.
Economics