For economies of scope to occur it must be true that THE COST OF PRODUCING THE TWO GOODS TOGETHER IS LESS THAN THE COST OF PRODUCING THE GOODS SEPARATELY.
The economy of scope is the proportionate savings that is gained by producing two or more different goods together, when the cost of doing so is less than that of producing each separately.
Answer:
a) The federal funds rate has a higher interest rate than the discount rate to encourage borrowing
Explanation:
The Feds fund rate is the rate at which banks borrow from each other usually overnight, while the discount rate is the interest rate charged by the Fed to commercial banks for borrowing directly from the Fed.
These borrowings help the commercial banks meet up their liquidity requirements.
The discount rate is higher than the Fed funds rate. This is to encourage banks to borrow from each other instead of borrowing directly from the Federal Reserve.
The Fed fund rate also tends to affect the prime lending rate (rate at which banks lend money to their clients).
So the statement - The federal funds rate has a higher interest rate than the discount rate to encourage borrowing. Is not correct
Answer:
6.85%
Explanation:
Mean = 575,234
Standard deviation = 10,245
Project will be successful when PV > 560,000
For not getting success, PV < 560,000
P (X < 560,000) = <em>P </em>(Z < (560,000-575,234)/10,245)
P (X < 560,000) = <em>P </em>(Z < -1.48697)
P (X < 560,000) = 0.0685
P (X < 560,000) = 6.85%
Therefore, the chance that the project will NOT succeed is 6.85%
Answer: D
uniform settlement statement
Explanation:
When buyers pick interest or when they assign their rights to someone else, they escape liability under the original contract.
Uniform Settlement Statement that the buyers and sellers should retain with their important records, so that they can both prepare their income tax returns following their real estate closings, as some of the expenses for both parties are actually tax-deductible.
The given statement is defined as creative destruction
<u>Explanation:</u>
It is defined as a creative destruction. Generally, creative destruction means when the old processes have been withdrawn so as to carry on new investment process or to carry out an innovative idea. The outdated process is replaced with the new process or an innovative process. This concept was firstly given by Joseph Schumpeter who coined it in his book.