The Entire Short- Run Production Function Shifts Upward If

question 9

Multiple Choice

The entire short- run production function shifts upward if:

• A) productivity decreases.
• B) the quantity of labor increases.
• C) the stock of capital increases.
• D) diminishing returns are close to zero.

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Definitions:

Internal Rate Of Return

The break-even discount rate at which a project's cash flows net present value is zero.

Present Value

Present value represents the contemporary worth of a future sum or cash flow sequence, discounted by a certain return rate.

Payback Method

A capital budgeting technique that calculates the amount of time required to recoup the original investment.

Cash Flows

The total incoming and outgoing monetary flow in a commerce, influencing its immediate financial capabilities.