A Real Option Value is:
a. An option that been deflated by the cost of living index makes it a "real" option.
b. An opportunity cost of capital.
c. An opportunity to implement cost savings or revenue expansion in a flexible business plan.
d. An objective function and a decision rule that comes from it.
e. Both a and b.
c
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Which of the following would NOT be counted as employed?
A) an underemployed person B) an employee working overtime every day C) a part-time worker D) a discouraged worker
Figure 7-8
Of the graphs in Figure 7-8, which represents fixed cost?
A. 1 B. 2 C. 3 D. 4
Which of the following best describes the inflation rate in the United Kingdom in 1975?
a. 8% b. 15% c. Almost 25% d. More than 25%