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    The Gizmo Company is planning to develop new household gadgets. shows the company’s demand for financial capital for research and development of these gadgets, based on expected rates of return from sales. Now, say that every investment would have an additional 5% social benefit—that is, an investment that pays at least a 6% return to the Gizmo Company will pay at least an 11% return for society as a whole; an investment that pays at least 7% for the Gizmo Company will pay at least 12% for society as a whole, and so on. Answer the questions that follow based on this information.

    If the going interest rate is 9%, how much will Gizmo invest in R & D if it receives only the private benefits of this investment?Assume that the interest rate is still 9%. How much will the firm invest if it also receives the social benefits of its investment? (Add an additional 5% return on all levels of investment.)

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Questions & Answers

what is elasticity
Helna Reply
measures responsiveness the quantity of demand for change in the price
Dina
a degree in which consumer's changes their demand or amount supplied in responce to changes in income or prices
Felix
is the concept which indicate the degree of responsiveness of quantity demanded to a small change in price of goods,income or price of another goods.
MUNIRUDEEN
what is a trade off
Charity
a balance achieved between two desirable but incompatible features; a compromise.
Wahaj
wow sorry question... fish not bull bear fish
muthatfucking
flexiblity in demand and price
Avinash
what is demand
Mouni Reply
what is dead weight loss
Sharee Reply
a reduction in consumers’ surplus caused by a fall in quantities of a product produced, especially when a monopoly producer keeps production low to maintain high prices
Wahaj
what is the difference between capitalism and socialism
Helna Reply
captalism ,market dominated economy socialism,goverment domineted economy
Avinash
what is the difference between positive economics and normative economics
Ritesh Reply
positive economics is not the value judgement but normative economics is known as the value judgement.
dilleswar
positive economics only describes the economic phenomenon as it is. normative economics, beside describing phenomenon also suggest a solution to it
Ariel
is there only one difference between positive and normative economics
Ritesh
that's the most important difference.
Ariel
what is economics
Ritesh Reply
is the study of allocative scarce resources to meet human unlimited want
Helna
other definition of economics
Ritesh
economic is the knowledge which concerned with the wealth and consumption of goods and services
Iqbal
Study of all kinds of economic activities people involve in a particular society n time
ANIL
how can we define a demand
Mouni
A good or something we really want and need
Enrico
economics simple defination is =needs+wants>resources
Felix
demand is consumer willingness to pay a price for a specific good or services
Felix
Thnx
Enrico
It is the science of scarcity the want are unlimited and resources are limited which are in alternative uses
Zaid
Demand is the desire to own anything, the willingness to pay for it and the ability to buy it
Victoria
explain the relationship between individual supply and market supply
Helna
what is positive economics
Sarita Reply
The consumer and producer are getting equal satisfaction i.e called positive economics.
Abhimanyu
Positive economics seeks to describe and predict measurable, economic phenomena. Normative economics seeks to identify what economies ought to be like.
David
so what is life like
Raymone Reply
life is a long story about how you die
Binay
Life is all about impact, influence and contributions u make when living
zacheaus
It's about how you use yourself as a resources to fulfill your goals, needs etc
ANIL
what is a law of demand?
Lydia Reply
its the relationship between price and quantity demanded, they are related conversely. As the price of a good increases, the quantity demanded will decrease and as price decreases the quantity demanded increases (all other factors remaining constant).
Ligia
thank you Ligia I know understand.
Lydia
A demand curve shows the relationship between the price and the quantity demanded... how about the supply curve?
Lydia
Also shows the relationship between price and quantity supply... At higher price, quantity supply increases and vice versa... All other things being equal.
gotah
It's shows an in inverse relationship between the price n quantity demand made by individual in a given period of time
ANIL
why don't ppl ask past paper questions
Melissa Reply
oligopoly is a market where few no. of sellers and large no. of buyrs
SUKHVIR Reply
right
Iqbal
what is Monopoly?
Iqbal
There are sole seller in monopoly and it easily influence the price
Emin
normative and positive economic
Iqbal
What is Oligopply
Durai Reply
What is oligopoly
Durai
A kind of market where there are few sellers selling identical or substitute of that product in a very close proximity
ANIL
why the IS curve is backward bending?
dilleswar
what is production function?
Grace Reply
what is production function?
hana
what is microeconomy?
hana
micrcoeconomy is the study of the economic behavior of individual unit of an economy( such as person, household, firms, industry)
Amit
what is dead weight loss?
Sharee Reply
what is indifference curve?
Nnenna
what is indifference curve?
hana
indiggerence carve show diffrent commbnation of two gods like w and y .which give to cansammer is equal level of satisfaction
Ziaullah
what is dead weight loss plz tell me
Sharee
Who are you?
Thomas Reply
hu R u
Tikachandra
I m f9
Ikhlas
I am shawon
MD

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Source:  OpenStax, Microeconomics. OpenStax CNX. Aug 03, 2014 Download for free at http://legacy.cnx.org/content/col11627/1.10
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