If an investment project costing $2,800 was expected to yield $1,000 (to be received at year end) for each of the next three years, a profit-maximizing entrepreneur would
a. definitely undertake the project.
b. never undertake the project.
c. undertake the project if the interest rate was low enough.
d. undertake the project if the interest rate exceeded 12 percent.
C
Economics
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In the simple Keynesian cross model with no government or foreign sectors, at the equilibrium level of output
A) saving is less than investment. B) saving is equal to investment. C) saving is greater than investment. D) saving is equal to zero.
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The model of perfect competition is valuable for
A) prediction. B) comparison to other markets. C) Either A or B D) None of the above.
Economics