Refer to Scenario 1 . If Ajax can borrow at an interest rate of 5%, which projects should be considered? If Ajax can borrow at an interest rate of 11%, which projects should be considered?
What is the level of total investment if the interest rate is 10%?
At an interest rate of 5%, every project except the jet-ski facility should be considered because they will all offer a greater rate of return. At an interest rate of 11%, the water pipeline and the amphitheater should be considered, as they are the only ones that offer a greater rate of return. At an interest rate of 10%, $17,500,000 is the level of total investment because the new water pipeline, amphitheater, and roads will all be undertaken.
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Key influences on the valuation of economic profits include ________
A) the average level of the prices of goods and services sold B) the rental price of capital C) the wage rate D) all of the above E) none of the above
Studies show that the supply curve for oranges has shifted. Which of the following could not explain the shift of the supply curve?
a. Weather conditions have changed. b. The price of fertilizer has changed. c. The wage paid to orange pickers has changed. d. The price of oranges has changed. e. The demand for grapefruit has changed.
In Figure 5.7, assuming perfect competition, which price is associated with positive economic profit? 
A. MR1 B. MR2 C. MR3 D. MR4
Refer to the table below for Nina. What is the change in total revenue if she raises the price from $10 to $12?
The table shows the demand schedule facing Nina, a monopolist selling baskets.
A. -$300
B. +$300
C. +$120
D. -$120