Which of the following is part of a firm's opportunity costs? I. wages II. utility costs III. interest on a bank loan IV. interest forgone on funds used to buy capital equipment
A) I and II
B) III and IV
C) I, II and III
D) I, II, III and IV
D
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What is the opportunity cost of producing capital goods such as a new road?
What will be an ideal response?
Restrictive covenants
A) generally require that firms use debt finance rather than equity finance. B) generally require that firms use equity finance rather than debt finance. C) put restrictions on the use of borrowed funds. D) were outlawed under the Civil Rights Act of 1964.
Expected value is:
A. the sum of all probabilities of all possible outcomes of a future event occurring. B. the average probability of all possible outcomes of a future event occurring, weighted by each possible outcome individually. C. the average of each possible outcome of a future event, weighted by its probability of occurring. D. None of these statements is true.
The price of a stock will rise if
a. the managers of a stock exchange decide the price should be higher. b. the demand for the stock rises. c. the supply of the stock rises. d. None of the above are correct.