Which of the Following Is True at the Level of Output

question 477

Multiple Choice

Which of the following is true at the level of output at which a competitive firm maximizes profit?

• A)price = marginal cost
• B)price = wage/value of marginal product of labor
• C)price = marginal product of labor/wage
• D)All of the above are correct.

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Definitions:

MIRR

Modified Internal Rate of Return, a measure used in capital budgeting to estimate the profitability of potential investments.

NPV

Net Present Value, a calculation used to determine the present value of an investment's cash inflows and outflows over time.

IRR

Internal Rate of Return, a metric used in financial analysis to estimate the profitability of potential investments.

MIRR

Modified Internal Rate of Return (MIRR) is a financial measure that adjusts the traditional internal rate of return (IRR) to account for the cost of capital and reinvestment of cash flows.