The Following Figure Shows Price Versus Demand in a Given

question 96

Multiple Choice

The following figure shows price versus demand in a given market.

-Refer to the figure above.If the optimal number of machines rented is 100,the market rental price must be ________.

• A) $3 per month
• B) $4 per month
• C) $5 per month
• D) $7 per month

Understand the role and treatment of net working capital (NWC) in project valuation.

Evaluate the effects of cost structures on pro forma statements for cost-cutting projects.

Calculate and analyze the incremental cash flows of a project.

Discern between different types of costs and their relevance to capital budgeting.

---

Definitions:

Total Utility

The total satisfaction received from consuming a given total quantity of a good or service.

Marginal Utility

The increase in contentment or advantage a person obtains by consuming another unit of a good or service.

Marginal Utility

The additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a product.

Total Utility

The aggregate level of satisfaction or fulfillment that a consumer receives through the consumption of goods or services.