Projects with a positive NPV create
a. economic profits since they earn a return higher than the company's cost of capital
b. economic profits since they earn a return lower than the company's cost of capital
c. accounting profits only since they earn a return higher than the company's cost of capital
d. accounting profits only since they earn a return lower than the company's cost of capital
a
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The demand for bus service is perfectly elastic at a price of $1.25 a ride. The table above shows the bus company's marginal cost and the marginal social cost of the bus service
If the government levies a tax on bus rides so that the bus company takes into account the marginal social cost, the tax will be ________ a ride. A) $0.75 B) $1.60 C) $1.25 D) $3.25
The first example of comparative advantage appeared in a book that was published in 1817. This example showed that mutually beneficial trade between two countries (England and Portugal) was possible
The example assumed that two goods (wine and cloth) could be produced by both countries. Which of the following describes the conclusion of this example? A) England had an absolute advantage in both wine and cloth, but a comparative advantage in wine. B) Portugal had a comparative advantage in both wine and cloth, but its advantage in cloth was greater. C) Portugal had a comparative advantage in wine and England had a comparative advantage in cloth. D) England had a comparative advantage in both wine and cloth, but its advantage in cloth was greater.
Provide a concise statement about the relationship between a developing country's emphasis on the export of traditional commodities and:
(a) export earnings stability; (b) comparative advantage; (c) terms of trade.
The primary reason the federal budgeting process changed in 1921 was that _____
a. the level of government expenditures were increasing b. the President wanted more power c. federal agencies wanted less responsibility d. World War II forced the military to get involved