What Simple Discount Rate D Is Equivalent Over a 200-Day

question 46

Multiple Choice

What simple discount rate d is equivalent over a 200-day period to simple interest rate of 8% for the first 100 days and 10% thereafter,if interest from the first 100 days does not earn interest during the last 100 days?

• A)9.11%
• B)9.00%
• C)8.68%
• D)8.58%

Identify the conditions under which average costs fall or rise due to marginal costs.

Recognize the reasons behind the shape of average cost curves.

Differentiate between diminishing returns to scale and decreasing returns to scale.

Understand factors leading to diminishing marginal returns.

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