The Weighted Marginal Cost of Capital Is _________Function of Total

question 57

Multiple Choice

The weighted marginal cost of capital is _________function of total financing in dollars; the internal rate of return on individual projects is _________function of the total capital investment in dollars.

• A) an increasing; an increasing
• B) an increasing; a decreasing
• C) a decreasing; an increasing
• D) a decreasing; a decreasing

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Definitions:

Net Importer

A country or region that imports more goods and services than it exports, resulting in a negative trade balance.

Economies Of Scale

The cost advantage that arises with increased output of a product, where the average cost per unit falls as the volume of its production increases.

Opportunity Cost

The next best alternative foregone as a result of making a decision.

Rice

A staple food grain consumed by a large portion of the world's population, particularly in Asia.