ABC Corp. is considering an investment project that costs $500 today. It expects the project will yield income of $200 at the end of years 1, 2, and 3. If the interest rate is 10%, the firm
A. is just indifferent between undertaking the investment and not.
B. should forgo the investment.
C. should undertake the investment.
D. indeterminate from the given information
Answer: B
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The NAAQS
a. are set using benefit-cost analysis b. are established using a benefit-based decision rule c. achieve efficient levels of abatement for the criteria pollutants d. both (a) and (c) are correct
What is a term referring to a table that shows the quantity supplied at a range of different prices?
a. demand curve b. demand schedule c. supply curve d. supply schedule
For a monopolistically competitive firm, which of the following is ensured by product differentiation?
a. Long-run profit b. Market power c. Economies of scale d. Increasing returns to scale
Pepsi and pizza are normal goods. When the price of pizza falls, the substitution effect by itself will cause a
a. shift to a lower indifference curve so that the consumer buys less Pepsi. b. shift to a higher indifference curve so that the consumer buys more Pepsi. c. movement along the indifference curve so that the consumer buys more Pepsi. d. movement along the indifference curve so that the consumer buys less Pepsi.