A decision or a choice that is made after using optimization analysis:
A) has zero opportunity cost.
B) is not necessarily risk free.
C) is the same for all individuals.
D) cannot be justified using normative analysis.
B
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Goods differ on the basis of whether their consumption is rival and excludable. Explain the terms "rivalry" and "excludability" as they are used to define goods
List the four categories of goods, and define these categories in terms of rivalry and excludability.
Table 10.1 shows the cash flows and discounted cash flows for three mutually exclusive projects available to a company. Assume an interest rate of 5%. Which project should the company choose if they want to recover their initial investment as soon as possible?
A. Project A
B. Project B
C. Project C
D. It cannot be determined from the information given.