Refer to the Following Table to Answer the Following Questions

question 12

Multiple Choice

Refer to the following table to answer the following questions:

-If the price of output falls from $5 to $2,the value of the marginal product of labor of all workers

• A) increases.
• B) remains unchanged.
• C) increases at an increasing rate.
• D) decreases at an increasing rate.
• E) decreases.

---

Definitions:

Incremental Project Cash Flows

The additional cash inflows or outflows expected from undertaking a specific project, excluding any cash flows not directly attributable to the project itself.

NPV

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment, representing the difference between the present value of cash inflows and outflows.

IRR

A metric used in financial analysis to estimate the profitability of potential investments, it represents the annualized effective compounded return rate.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and should not influence future business decisions.