The Decision Rule for the Internal Rate of Return States

question 9

Multiple Choice

The decision rule for the internal rate of return states that if the IRR

• A)is greater than the market interest rate the project should be approved
• B)is lower than the market interest rate the project should be approved
• C)is roughly the same as the market interest rate the project should be approved
• D)is greater than 0 the project should be approved

Calculate optimal output, cost, and profit for businesses under various market conditions.

Analyze the impact of government interventions, such as taxes, on market outcomes and firm operations.

Distinguish between short-run and long-run industry adjustments to changes in demand or cost.

Assess the role of supply and demand in determining market equilibrium prices and quantities.