At the start of the year, your firm's capital stock equaled $10 million, and at the end of the year it equaled $15 million. The average depreciation rate on your capital stock is 20%. Net investment during the year equaled
A. $3 million.
B. $5 million.
C. $4 million.
D. $7 million.
Answer: B
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During the mid-2000s, the average price of a used car fell by nearly $500 and the quantity sold nation-wide decreased by several thousand each year. This set of results is a contradiction of the law of demand
Indicate whether the statement is true or false
When the Fed allows the monetary base to respond to the purchase or sale of domestic currency in the foreign exchange market, the process is called
A) open market operations. B) hedging. C) sterilized intervention. D) unsterilized intervention.
If the owners of a business are receiving total revenues just sufficient to cover all of their explicit and implicit costs, then they are:
A. earning a normal profit. B. doing worse than their next best alternative. C. earning an economic loss. D. doing better than their next best alternative.
Which statement is true?
A. The monopolistic competitor breaks even in the long run. B. The monopolistic competitor operates at an output that is less than peak efficiency. C. The monopolistic competitor has a small influence on price because its products are differentiated. D. All of the choices are true.