Economics Homework #11
Mark B.
1. Instead of loaning money, I could invest the same amount of money and earn more. Interest makes it profitable to loan money.
2. $1102.50
3. It is a fixed cost, because the cost doesn't change when more people go.
5. 1000/(1.1 x 1.1) = 1000/1.21 = $826.45
6. Question 14: I misread the question. When price increases, producers want to make more money by making more product.
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