Siti Is One of Many Consumers in the Yellow Onion

question 2

Multiple Choice

Siti is one of many consumers in the yellow onion market. Which of the following statements is (are) TRUE?
I. Siti's demand curve must have the same slope as that of the market demand curve.
II. Siti's demand curve must be to the right of the market demand curve.
III. Siti's demand curve is either as flat as or flatter than the market demand curve.

• A) II and III
• B) I
• C) II
• D) III

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Definitions:

Capital Rationing

The act of placing restrictions on the amount of new investments or projects a company may undertake, often due to limited resources such as capital.

Present Value Concepts

The idea that an amount of money today is worth more than the same amount in the future due to its potential earning capacity, often calculated through discounting future cash flows.

Capital Investment Proposal

A formal request or plan for spending on large-scale projects or purchases, intended to improve a company's assets or operations.

Internal Rate of Return Method

A financial metric used to evaluate the profitability of potential investments, calculating the discount rate that makes the net present value of all cash flows from a particular project equal to zero.