A firm should make an investment only if
a. it is profitable in every year.
b. the present value of the profits exceeds the present value of the costs.
c. the present value of the revenues exceeds the present value of the costs.
d. there are no large losses in the early years.
c
You might also like to view...
Many economists now deemphasize capital accumulation as a source of growth because:
A. capital has been defined so narrowly that it has become a less useful concept. B. capital accumulation alone does not necessarily lead to growth. C. capital accumulation no longer affects growth. D. the value of the capital stock no longer depends upon technology and needs of society.
Intermediate goods are NOT included in Gross Domestic Product (GDP) calculations because
A. they are made from foreign raw materials. B. they have very low value added. C. they are produced overseas. D. they are used in the production of final goods and would then be counted twice.