If a decision maker uses marginal analysis, then the relevant costs are the
a. full costs of a particular activity or product.
b. fixed costs which do not vary with the extra activity or output.
c. profits obtained on the activity or product.
d. average costs for a particular activity or product.
e. additional costs of a particular activity or product.
e
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Two projects have the following NPVs and standard deviations:
Project A Project B NPV 200 300 Standard deviation 75 100 Which of the two projects is more risky?
The mathematical result showing that, under certain assumptions, there is no scheme for aggregating individual preferences into a valid set of social preferences is called
The average variable cost curve and the average total cost curves are intersected at their __________ by the marginal cost curve.
Fill in the blank(s) with the appropriate word(s).
The law of demand states the basic price/quantity relationship of consumption incentives. What does the concept of "price elasticity" add to that knowledge?
What will be an ideal response?