A Company Has the Opportunity to Invest in Two Projects,both

question 27

Short Answer

A company has the opportunity to invest in two projects,both of which have a positive net present value.They will accept both projects if they are ____________ investments.

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Definitions:

Industry Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output of the industry over a range of prices.

Economic Profits

The variance between the sum of earnings and the sum of expenditures, encompassing both direct and indirect costs.

Industry Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output of that good by all firms in the industry.

Diminishing Returns

A principle stating that as one factor of production increases while others remain fixed, there will eventually be a decrease in the incremental output gained.