Refer question 1 and answer both the questios Question 1 Afrm raises capital to invest in a business project. The marginal revenue from the first 5 units of capital is: 1st unit has MR $1.64, 2nd unit has MR 1.41, 3rd unit has MR 1.30, 4th unit has MR 1.23, and 5th unit has MR 1.18. If the interest rate is 26%, what is the optimal amount of capital for this firm to borrow? O. 2 O. 3 O. 4 O .5 Question 2 Consider the MR figures in Problem 1. If this firm borrows exactly 5 units of capital, what is the firm's total revenue? O. 6.05 O. 6.76 O. 6.89 O. 7.14
Refer question 1 and answer both the questios Question 1 Afrm raises capital to invest in a business project. The marginal revenue from the first 5 units of capital is: 1st unit has MR $1.64, 2nd unit has MR 1.41, 3rd unit has MR 1.30, 4th unit has MR 1.23, and 5th unit has MR 1.18. If the interest rate is 26%, what is the optimal amount of capital for this firm to borrow? O. 2 O. 3 O. 4 O .5 Question 2 Consider the MR figures in Problem 1. If this firm borrows exactly 5 units of capital, what is the firm's total revenue? O. 6.05 O. 6.76 O. 6.89 O. 7.14
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Refer question 1 and answer both the questios
Question 1
Afrm raises capital to invest in a business project. The marginal revenue from
the first 5 units of capital is: 1st unit has MR $1.64, 2nd unit has MR 1.41, 3rd
unit has MR 1.30, 4th unit has MR 1.23, and 5th unit has MR 1.18. If the interest
rate is 26%, what is the optimal amount of capital for this firm to borrow?
O. 2
O. 3
O. 4
O .5
Question 2
Consider the MR figures in Problem 1. If this firm borrows exactly 5 units of
capital, what is the firm's total revenue?
O. 6.05
O. 6.76
O. 6.89
O. 7.14
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