In Economists' Models, Technological Advance Occurs in

question 261

Multiple Choice

In economists' models, technological advance occurs in

• A)the very long run.
• B)either the short run, long run, or very long run.
• C)manufacturing industries but not in service industries.
• D)pure competition but not in monopolistic competition, oligopoly, and pure monopoly.

Understand the significance of correct discount rates in NPV calculations and the impact of risk adjustment.

Grasp the methodology of assigning value to real options and its implications in project evaluation.

Calculate the risk-adjusted NPV of projects using appropriate discount rates and compare different project outcomes.

Understand and explain the certainty equivalent approach and its application in capital budgeting.