The Following Information Is Available for a Potential Investment for Panda

question 83

Multiple Choice

The following information is available for a potential investment for Panda Company: $\begin{array} { l r } \text { Initial investment } & \$ 95,000 \\\text { Net annual cash inflow } & 20,000 \\\text { Net present value } & 36,224 \\\text { Salvage value } & 10,000 \\\text { Useful life } & 10 \text { yrs. }\end{array}$ The potential investment's profitability index is

• A)4.75.
• B)3.22.
• C)2.62.
• D)1.38.

Identify the features of demand and marginal revenue curves for purely competitive firms.

Differentiate between various market structures (pure competition, monopolistic competition, oligopoly, and monopoly) based on their defining characteristics.

Analyze the implications of being a price taker in a purely competitive market on a firm's pricing and output decisions.

Recognize the conditions under which a purely competitive firm will achieve profit maximization or reach a break-even point.