If the cost of capital decreased to 1%, does the firm invest in the new technology?
a. Yes because the NPV>0
b. Yes because the NPV=0
c. Need information on the marginal benefits and costs
d. No because the NPV<0
a
Economics
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Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico in 2005. This drove up the prices of natural gas, gasoline, and heating oil. This is an example of a
A) supply shock. B) demand shock. C) negative externality. D) depression.
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"An increase in the price of oranges will increase the demand for grapefruits." This statement is an example of a normative economic statement
Indicate whether the statement is true or false
Economics