The Minimum Required Rate of Return Is Often Referred to as the

question 102

Multiple Choice

The minimum required rate of return is often referred to as the

• A)benchmark rate.
• B)hurdle rate.
• C)project rate.
• D)future value rate.

---

Definitions:

Price-taker Firm

A firm that has no control over the market price and must accept the prevailing market price for its products.

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.

Marginal Cost

The cost of producing one additional unit of a product or service.

Average Variable Cost

The total variable expenses divided by the number of units produced, representing the variable cost per unit.