-Refer to the Image Above

question 41

Multiple Choice

-Refer to the image above. Suppose the willingness to pay of the marginal buyer of the 3rd unit is R225. Then total surplus is maximised if:

• A) 1 unit of the good is produced and sold.
• B) 2 units of the good are produced and sold.
• C) 3 units of the good are produced and sold.
• D) 4 units of the good are produced and sold.

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Definitions:

Investor Returns

The gain or loss on an investment over a specified period, usually expressed as a percentage of the investment's initial cost.

Capital Components

The various sources of funding a company uses to finance its operations, including debt, equity, and any hybrid instruments.

Cost of Capital

The essential return needed to justify the investment in a capital budgeting project, like constructing a new manufacturing facility.

Market Value

Today's market rate for the purchase or sale of services or assets.