Variable cost:
A) depends on the number of units produced.
B) plus marginal cost equals fixed cost.
C) is equal to total cost in deterministic models.
D) is the same as average cost.
Answer: A
You might also like to view...
NYC Company has decided to make a major investment. The investment will require a substantial early cash outflow, and inflows will be relatively late
As a result, it is expected that the impact on the firm's earnings for the first 2 years will cause a negative growth of 5% annually. Further, it is anticipated that the firm will then experience 2 years of zero growth, after which it will begin a positive annual sustainable growth of 6%. If the firm's required return is 10% and its last dividend, D(0), was $2 per share, what should be the current price per share? A) $32.66 B) $47.83 C) $53.64 D) $38.48 E) $42.49
You have agreed to a $30,000 fixed-rate loan from People's Bank today and promise to repay the loan with 24 equal monthly payments at an APR of 4.50%. What is the EAR of this loan?
A) 4.71% B) 4.63% C) 4.59% D) 4.50%