In Order to Generate a Positive NPV Project, a Firm

question 44

True/False

In order to generate a positive NPV project, a firm must have an economic advantage over its competitors.

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Definitions:

Variable Input

Any resource for which the quantity used in production can vary as the level of output changes.

Perfectly Competitive

A market structure where many firms offer products that are similar and entry into the market is relatively free of barriers.

Labor Market

A trading area where job seekers and employers meet, defined by labor supply and demand.

Wage Rate

Wage Rate is the standard amount of compensation for labor, paid on an hourly, daily, or piecework basis.