If a Project Has a Negative Net Present Value, the Internal

question 127

Multiple Choice

If a project has a negative net present value, the internal rate of return will be

• A) less than the discount rate.
• B) greater than the discount rate.
• C) equal to the discount rate.
• D) a negative rate of return.

Distinguish between the short run and long run in economic analysis, particularly in terms of firm behavior and market dynamics.

Apply the concepts of sunk costs and opportunity costs in economic decision-making.

Evaluate the conditions for long-run equilibrium in competitive markets and the adjustment process following changes in demand.

Comprehend the role of supply and demand in determining market equilibrium and the effects of shifts in demand.

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