Exhibit 7-3 Cost per unit curves
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As shown in Exhibit 7-3, the price at which the firm earns zero economic profit in the short-run is:
A. $1.00 per unit.
B. $1.50 per unit.
C. $2.00 per unit.
D. $4.00 per unit.
Answer: C
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What will be an ideal response?
Answer the following statements true (T) or false (F)
1) Operating profits omit interest payments. 2) When the maximum amount of interest is paid on a loan, the present value of the cost of the investment exceeds the initial cost of the investment. 3) Salvage values are strictly positive. 4) When a firm uses its own funds to self-finance an investment, the operating profit exceeds the taxable profit. 5) Financing an investment with debt increases the net present value of the investment.
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A. 20.0 percent. B. 5.0 percent. C. 12.5 percent. D. 25.0 percent.
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A. a woman, because it increases men's uptake rate, but does not affect women's uptake rate. B. a woman, because it increases women's uptake rate, but does not affect men's uptake rate. C. a man, because it increases men's uptake rate, but does not affect women's uptake rate. D. a man, because it increases women's uptake rate, but does not affect men's uptake rate.