Figure 20-2. -Refer to Figure 20-2. Point B Represents

question 467

Multiple Choice

Figure 20-2.
-Refer to Figure 20-2. Point B represents

• A)a short-run equilibrium and a long-run equilibrium.
• B)a short-run equilibrium but not a long-run equilibrium.
• C)a long-run equilibrium but not a short-run equilibrium.
• D)neither a short-run equilibrium nor a long-run equilibrium.

---

Definitions:

Initial Investments

The sum of money used to start a business venture, purchase capital assets, or invest in a project.

Income Taxes

Government levies on the earnings of individuals and companies within their territory.

After-Tax Discount Rate

The discount rate used in investment or project valuation that accounts for the effects of taxes on the project's cash flows.

Straight-Line Depreciation

A method of allocating an asset's cost evenly over its useful life.